Oil Lower After Surprise Rise in US Inventories

Oil futures pared gains Wednesday after data showed an unexpected rise in U.S. crude inventories last week. The Energy Information Administration said inventories rose by 1.6 million barrels.

Economists surveyed by The Wall Street Journal had forecast a 200,000 barrel decline, while reports said the American Petroleum Institute’s weekly tally late Tuesday showed a 1.8 million barrel decline. West Texas Intermediate crude futures for May delivery CLK7, +0.61% on the New York Mercantile Exchange were up 38 cents at $51.41 a barrel but had traded above $51.70 ahead of the data.

Gasoline inventories fell by around 600,000 barrels, the EIA said, versus expectations for a fall of 1.6 million barrels. Distillate stocks, which include diesel fuel and heating oil, fell by 500,000 barrels, the EIA said, versus forecasts for a decline of 700,000 barrels.

via MarketWatch

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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