Oil Drops as API Reports Further Inventory Swell to Record Levels
- Oil fell after API reported crude inventories rose 9.9m barrels in the week ending Feb 26
- Though only the biggest inventory build-up since Jan. 26, it represents another record
- DOE releases its figures in tomorrow’s session. Economists expect a gain of 3.4m barrels
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Crude oil fell after the American Petroleum Institute (API) reported that inventories rose by 9.9 million barrels in the week ending February 26, the largest gain since January 26. Economists estimated a rise of 2.5m barrels.
In tomorrow’s trading session, the US Department of Energy (DOE) will release its measure of crude inventories for the same period. Analysts forecast an increase of 3.4 million barrels compared to the prior reading of a 3.5m barrels increase.
Key contributions to the raw material’s record supply-demand imbalance involve record output from Saudi Arabia, United States and Russia as well as the economic slowdown in China – the world’s second largest consumer of crude oil. Selling pressure has prompted market speculation for a production freeze by OPEC members and a number of volatility-inducing rumors. However, no agreement has been found despite supposed meetings on the topic.
Source: US Department of Energy