Oil Lower on Wednesday Despite Fall in US Weekly Inventories

Oil prices fell on Wednesday despite a larger-than-expected decline in U.S. crude and gasoline inventories, as investors remained concerned about high global crude output and the nagging supply glut.

Brent crude futures fell $1.43 at $44.59 a barrel. U.S. crude futures fell $1.24 to $42.47, briefly falling 3 percent, a 10-month low.

The U.S. Energy Information Administration said crude inventories declined by 2.5 million barrels, exceeding expectations for a 2.1 million-barrel drop. This data supported prices only briefly.

“Updated inventory balances don’t represent a game changer,” said Anthony Headrick, energy market analyst at CHS Hedging LLC in Inver Grove Heights, Minnesota. “Particularly while lower 48 crude production rose 25,000 barrels per day.”

via CNBC

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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