Crude Lower Despite Soft USD after Fed

March 16, 2017 Share Print 0

Oil prices slipped on Thursday, as support from a weaker dollar was offset by a stubbornly high level of U.S. inventories near record levels that suggested OPEC-led output cuts were starting to drain supplies.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers cut production from Jan. 1 to reduce record stocks of crude. But an oil price rally after the deal has been hobbled by data showing persistently rising U.S. stockpiles.

Prices were pressured by data from market intelligence firm Genscape showing a build of more than 2 million barrels in the week to March 14 at the Cushing, Oklahoma delivery point for U.S. crude futures, traders said.

Data on Wednesday showing a modest slide in crude stockpiles in the United States, the world’s biggest oil consumer, had helped lift oil prices after a week-long rout pushed them to three-month lows.

The U.S. Energy Information Administration said on Wednesday that crude inventories fell last week, the first decline after nine weeks of increases, but only a dip of 237,000 barrels from a record high. It also reported Cushing stocks jumped 2.13 million barrels in the week to March 10.

via Reuters

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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.