Oil Keeps Near 6 Month Highs Despite US Crude Buildup

Oil prices steadied on Wednesday near six-month highs after data that showed U.S. stockpiles rose to their highest levels since October 2017, countering fears of tight supply resulting from OPEC output cuts and U.S. sanctions on Venezuela and Iran.

Brent crude futures lost 9 cents to $74.42 a barrel by 1:06 p.m. EDT (1706 GMT). The international benchmark reached $74.73 a barrel on Tuesday, highest since Nov. 1.


West Texas Intermediate graph

U.S. West Texas Intermediate crude futures fell 49 cents to $65.81 a barrel. The contract hit $66.60 a barrel on Tuesday, the highest since Oct. 31.

U.S. crude inventories rose 5.5 million barrels last week, the Energy Information Administration said, far more than analysts’ forecast of an increase of 1.3 million barrels.

However, gasoline stocks fell by 2.1 million barrels, a larger-than-anticipated drop.

via Reuters

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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