Oil Declines After Unexpected Increase in US Crude, Gasoline Stockpiles

Нефть Brent торгуется выше 78 долларов за баррель

Нефть Brent торгуется выше 78 долларов за баррель

"A 5.8 million-barrel build is kind of like a slap in the face, where it's like, 'Where did this oil come from?' And as you look through the numbers, it doesn't make a lot of sense", said Phil Flynn, analyst at Price Futures Group in Chicago.

"The big story" in the markets this year has been the sharp jump in oil prices, says The Observer. The collapse of Venezuela's economy and increased USA sanctions is likely to hamper already depressed output from the OPEC member.

U.S. West Texas Intermediate crude ended Wednesday's session down 36 cents, at $71.84 a barrel.

Meanwhile, OPEC may ease oil supply retraints in June, according to Reuters. During the previous oil boom, US shale producers borrowed large sums in order to ramp up production.

Stabilizing trade relations between the countries could boost oil demand, Tradition's McGillian said. The price of a barrel of Brent crude was down by more than 1.6 per cent to $78.22 at one point yesterday.

WTI is shedding further ground today after the EIA reported on Wednesday that United States crude oil supplies unexpectedly rose by nearly 5.8 mbpd during the week ended on May 18, while USA oil production stayed at all-time highs beyond 10.70 mbpd.




Oil prices recovered some ground Wednesday after a surprise jump in USA crude inventories, which added another headwind to oil markets following suggestions that OPEC might increase production.

The ministers, along with their counterpart from the United Arab Emirates, discussed an output increase of about 1 million barrels per day (bpd), sources told Reuters.

US crude inventories rose 5.8 million barrels last week, while gasoline stocks increased by 1.9 million barrels, the Energy Information Administration said. While Saudi Arabia has avoided pinpointing an exact price target for oil, Bloomberg reported citing people familiar with development that it is aiming for $80 to support the valuation of Saudi Aramco before an initial public offering.

On May 22, the media said that OPEC at a meeting in June could decide to increase production. Markets now await the U.S. durable goods data and Fed Chair Powell's speech for fresh dollar trades, which could have a major bearing on the USD-sensitive oil.

"Higher prices have begun to impact forward demand expectations and OPEC and Russian Federation, being willing and able to increase production, may have been looking for a way out of the deal which would not upset the market too much", he said.

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