Oil Fell After Leaks About Rising US Inventories

Oil prices fell amid renewed concerns about a rise in US production after estimates of rising inventories. In yesterday's trading, prices fell as political developments in Venezuela after Venezuela's opposition leader and speaker of the Venezuelan parliament Juan Juano announced his inauguration as interim president.

US Petroleum Institute shows sudden rises in US oil inventories

Crude oil prices extended in March on Wednesday as traders learned from the media that the API's weekly report showed an unexpected surge in inventories in the United States. It is said that the volume of crude oil rose by 6.55 million barrels in the seven days until January 18 although the reserves in the industry center in Cushing, Oklahoma, appears to be increased by 359 thousand barrels only.

Analysts had forecast a drop of 600,000 barrels, and official data is due later today from the Energy Information Administration.

The downward pressure on prices has been exacerbated by the alleged increase in the amount of gasoline in stock by 3.64 million barrels compared to the jump that exceeded 2.57 million barrels in the distillate category.

And the continuing uncertainty about slowing global growth that would affect oil demand levels. Where several reports were issued over the past Weekly extent of the slowdown on the expected global economy in 2019 show from the International Monetary Fund report, which showed in the third update him about the depth of the expected slowdown as well as the World Bank report and the report of OPEC on the global economy and recent reports from several international banks

Oil contracts

  • Nymex crude futures for March delivery fell 0.63% to $ 52.29 a barrel,
  • Brent crude for March delivery fell 0.65% to $ 60.74 a barrel at 8:00 am CET.

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