Oil Drops as Inventories Expected to Rise

West Texas Intermediate crude traded little changed in its worst start to any year since 2009 amid estimates U.S. fuel stockpiles increased for a third week, signaling slowing demand in the world’s biggest oil consumer.

Futures declined 6.4 percent in New York since Dec. 31. Distillate inventories, including heating oil and diesel, probably rose by 1.38 million barrels last week, a Bloomberg News survey showed before Energy Information Administration data tomorrow. Deutsche Bank AG lowered its 2014 forecasts for WTI and Brent amid “rampant U.S. oil-supply growth.”

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