OIl Falls As Oversupply Continues

Oil prices have tumbled in the runup to the release of data expected to show US inventories at record highs. Rising production from the world’s biggest exporter, Saudi Arabia, also fuelled worries about global oversupply.

Brent crude fell $2 to $58.53 a barrel on Thursday, after hitting a two-month high of $63 a barrel on Tuesday. US crude for March delivery, which expires on Friday, also lost $2, to $50.05 a barrel.

Falling oil prices drove the Russian rouble lower, as oil is one of the country’s main exports.

According to the American Petroleum Institute, US crude stocks rose by 14.3m barrels last week, far more than analysts had expected. Markets are waiting for official figures from the US Energy Information Administration, out at 16.00 GMT. If they confirm the large build-up in inventories, it would be the biggest weekly increase since data started in 1982.

via The Guardian

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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