Brent Oil down to $54.50 on Oil Inventory Build

Brent crude slipped below $56 a barrel on bigger than expected oil stocks in the United States though losses were limited on a weaker dollar as the Federal Reserve signaled a slower pace of interest rate hike.  Brent crude oil futures for May delivery LCOc1 fell 22 cents to $55.69 a barrel by 0155 GMT, after jumping as much as six percent in the previous session.

U.S. crude oil futures for April delivery CLc1 shrunk by 53 cents to $44.13 a barrel, after ending the previous session three percent higher.

“The weaker U.S. dollar was supportive of commodity prices but another big build in inventory might mean the upside on oil prices is limited until there is some turnaround in U.S. oil production.”  U.S. crude stocks rose by 9.6 million barrels last week, nearly three times as much as analysts’ expectations, data from the Energy Information Administration (EIA) showed on Wednesday.

Reuters

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