Oil Under Pressure After Huge US Jump in Crude Inventories

Oil steadied on Wednesday ahead of the Energy Information Administration (EIA) report, following several days of declines, after industry data showed a surprise drop in the API U.S. crude inventories, although gains were capped as weak economic readings in the United States depressed global markets.

Brent crude futures, an international benchmark for oil prices, were down 6 cents at $58.83 a barrel at 1307 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 6 cents to $53.68 a barrel.

Front-month WTI prices settled down for a sixth straight session on Tuesday, their longest losing streak this year, after U.S. manufacturing activity dropped to a 10-year low as U.S.-China trade tensions weighed on exports.


West Texas Intermediate graph

The EIA data showed a 3.1 million barrels rise in crude stocks last week and piled on the pressure on crude prices.

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