Oil Prices Turn Negative as U.S. Inventories, Production Jump
Published Nov 07, 2018 10:31AM ET
Updated Nov 07, 2018 10:57AM ET
U.S. crude oil inventories rise 5.783 million vs. 2.433 million forecast
Investing.com - U.S. crude prices turned negative after American crude oil inventories rose more than expected and output also jumped, increasing concerns over global supply.
The EIA data showed that crude oil inventories increased by 5.783 million barrels in the week to Nov. 2.
That was compared to forecasts for a stockpile build of just 2.433 million barrels, after a rise of 3.217 million barrels in the previous week.
Furthermore, U.S. crude production jumped from 11.2 million barrels per day to 11.6 million in the latest week.
The data caused a selloff in crude prices with a barrel of West Texas Intermediate down 0.71% to $61.77 a barrel by 10:47 AM ET (15:47 GMT), compared to $62.31 prior to the publication.
Meanwhile, London-traded Brent crude futures also turned negative, falling 0.29% to $71.92 a barrel, compared to $72.44 ahead of the release.
Increasing inventories and output have increased concern of oversupply with the U.S. passing Russia as the world’s largest producer, while Saudi Arabia has significantly increased production since June.
Adding to the downward pressure this week, while Washington re-imposed U.S. sanctions against Iran’s oil exports, it granted waivers to eight importers, including China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey, to allow them to continue buying from the Islamic Republic “temporarily.”
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Written By: Investing.com
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