Oil Drops Ahead of US Crude Inventories

Oil prices plunged more than 3 percent on Wednesday, ending the longest bullish streak in five years, as more evidence indicated OPEC exports rose last month.

U.S. West Texas Intermediate crude futures fell $1.69, or 3.6 percent, to $45.38 per barrel at 12:23 p.m. ET, erasing much of the previous two sessions’ gains.

International benchmark Brent crude futures slumped $1.50, or 3 percent, to trade at $48.11 per barrel.


West Texas Intermediate graph

WTI prices rose nearly 11 percent from a 10-month closing low over the course of eight sessions, the contract’s longest winning streak since 2012.

Bearish sentiment crept back into the market after data from Thomson Reuters Oil Research showed OPEC’s exports rose in June. This was despite the producer group reaching an agreement in May to extend a deal to keep 1.8 million barrels a day off the market in order to shrink global supplies and end a three-year glut.

OPEC exported 25.92 million barrels per day in June, up 450,000 bpd from May and 1.9 million bpd more than a year earlier.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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