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Oil Prices Fall before US Energy Report
[ALMANAR.LB] Oil prices fell Wednesday as traders awaited the release of US crude inventory data, which are expected to show a further rise in stockpiles.At around 1100 GMT, the US benchmark West Texas Intermediate (WTI) for delivery in April slid 74 cents to stand at $33.66 a barrel. In London, Brent North Sea crude for May shed 36 cents to $36.45 a barrel compared with Monday's close. Crude futures had risen Tuesday on fresh Russian calls for a production freeze to reduce the global supply glut. "US crude oil inventories increasing is almost becoming a norm. Inventories are already at a historic high" and markets are taking a nonchalant stance towards a continued inch upwards, said Daniel Ang, analyst at Phillip Futures in Singapore. "US production, on the other hand, is slightly more interesting as it is finally starting to show corrections. We highly expect to see US oil production drop a lot more now that prices are in the $30 region, which could result in the easing of global oil supply," he added in a note. A Bloomberg News survey ahead of Wednesday's Energy Information Administration (EIA) report showed that US crude stockpiles probably increased 3.4 million barrels from an 86-year high last week. Posted by: Fred 2016-03-03 |
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