Oil prices plunged on Wednesday, with futures falling to their lowest since January, after the U.S. government reported an unexpected surge in the nation’s crude stockpiles.
U.S. commercial crude inventories jumped by 6.8 million barrels in the week through May 31, the U.S. Energy Information Administration reported. Stockpiles jumped despite refineries increasing activity and as U.S. crude imports jumped by more than 1 million barrels per day.
That trumped an earlier reading from the American Petroleum Institute that suggested stockpiles rose by 3.5 million barrels in the week. Analysts’ had expected stocks to drop by 849,000 barrels, according to a Reuters poll.
U.S. West Texas Intermediate crude fell to a session low of $50.66 after the report, the lowest level since Jan. 15. WTI was down $1.65, or 3.1%, at $51.83 a barrel around 1:35 p.m. ET (1735 GMT).
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.