Oil extends losses after report shows surprise US stocks build
TOKYP – Crude oil prices fell for a fourth day on Wednesday, as jittery investors awaited official US stockpile figures later in the day after industry data showed a surprise build in inventories, underlining a persistent global glut.
The American Petroleum Institute said crude stockpiles rose by 9.3 million barrels in the week to Oct. 28, more than nine times the amount expected by analysts polled by Reuters. [API/S]
U.S. West Texas Intermediate crude CLc1 fell 40 cents, or 0.9 percent, to $46.27 by 0337 GMT. On Tuesday it dipped 19 cents to $46.67. Brent crude LCOc1 was down 32 cents at $47.82, near a one-month low of $47.72 hit in the prior session.
Prices have slumped in recent days as hopes have faded that oil producers would settle their differences and agree to output cuts when the Organization of the Petroleum Exporting Countries (OPEC) meets on Nov. 30.
“Those who were hoping for some upside from any sort of production agreement appear to have their hopes dashed,” said Ric Spooner, chief market analyst at CMC Markets in Sydney. “It looks like there are speculative longs quitting the market.”
Indications of higher-than-expected U.S. stockpiles is also dragging on sentiment. The API report typically comes a day before official inventory data from the US government’s Energy Information Administration (EIA). -Reuters