Oil Falls After Surprise Buildup of Crude in the US

June 5, 2019 Share Print 0

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).

via CNBC

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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.