Oil Declines on US Supply Report

West Texas Intermediate and Brent crudes extended losses after a government report showed that U.S. inventories advanced for a seventh week.

Futures fell as much as 1.1 percent in New York after the Energy Information Administration said supplies rose by 1.43 million barrels last week to 363.8 million. A 1.3 million-barrel gain was projected, according to the median of analyst estimates in a Bloomberg survey. Prices also slid on speculation that the dispute in Ukraine’s Crimea region won’t disrupt oil shipments.

WTI for April delivery dropped 98 cents, or 0.9 percent, to $102.35 a barrel at 10:40 a.m. on the New York Mercantile Exchange. Futures traded at $102.75 before the EIA report was released at 10:30 a.m. in Washington. The volume of all futures traded was near the 100-day average.

Brent for April settlement declined 87 cents, or 0.8 percent, to $108.43 a barrel on the London-based ICE Futures Europe exchange. Futures were at $108.38 before the report. Trading was 16 percent higher than the 100-day average.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza