Oil Remains in the Dumps

Oil prices opened up weak on Thursday in Asia after record U.S. stockpiles sent it tumbling to near six year lows in the previous session, and analysts said that the outlook remained weak.  U.S. crude prices tumbled on Wednesday after the U.S. reported record-high inventories that raised anxieties about the global oil glut that had pressured the market since last summer.

The U.S. Energy Information Administration (EIA) said domestic crude oil stocks rose by almost 9 million barrels last week to reach nearly 407 million, their highest since the government began keeping records in 1982.  “The market expects stockpiles to keep rising, pushing front-month prices further down as refineries enter maintenance season and are likely run at lower utilisation rates,” ANZ said in a morning note on Thursday.

Thursday’s markets opened up close to their previous settlement levels, and analysts said the outlook remained weak.  Brent crude LCOc1 was trading at $48.60 a barrel at 0131 GMT, U.S. crude CLc1 was at $44.43 a barrel, both close to six year lows.

Reuters

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