NYMEX crude drops in early Asia on ample supplies, slack demand

Investing.com - Crude oil remained weaker in Asia on Thursday on downbeat data showing a sharp rise in stockpiles of oil and refined products in the U.S. and no signs of sharp demand increases globally.

On the New York Mercantile Exchange, crude oil for delivery in March fell 0.22% to trade at $49.25 a barrel.

Overnight, West Texas Intermediate oil futures extended heavy losses on Wednesday, after data showed that oil supplies in the U.S. rose to the highest level on record, exacerbating fears over a glut in supplies.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 4.9 million barrels in the week ended February 6, higher than expectations for an increase of 3.8 million barrels.

Total U.S. crude oil inventories stood at 417.9 million barrels as of last week, the most in records dating back to August 1982.

The report also showed that total motor gasoline inventories increased by 2.0 million barrels, compared to expectations for a gain of 0.2 million, while distillate stockpiles decreased by 3.3 million barrels.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for April delivery slumped $2.08, or 3.61%, to trade at $55.42 a barrel on Wednesday.

Oil prices have fallen sharply in recent months as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.

Market sentiment remained subdued ahead of a meeting of Eurogroup finance ministers in Brussels later in the day, amid ongoing jitters over Greece's future in the euro zone.

Greece's Finance Minister Yanis Varoufakis is due to meet with other finance ministers of the euro zone later Wednesday to discuss a solution to Greece's bailout program.

Athens is expected to ask for a bridge loan to cover its funding needs until September and to also propose new economic reforms to replace some of the harshest austerity conditions attached to its bailout.

Greek Prime Minister Alexis Tsipras has said he will deliver on pre-election pledges to roll back austerity measures and reject an international bailout extension, fuelling fears over Greece’s future in the euro zone.

Athens main stock index tumbled more than 4%, while the yield on Greek 10-Year bonds rose sharply to trade near the 11%-level.

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