Oil Falls 2% Between Increasing Surplus Stocks

Published Date : Nov 06, 2015

On Thursday, prices for oil slipped under pressure from increasing stockpiles in the U.S. as well as Europe. The U.S. oil inventories increased for the sixth week in a row, while in Europe, crude prices are reaching closer to a 5 month low.

Oil fell almost 4% on Wednesday after an addition after the Energy Information Administration’s announcement of nearly 2.85 million barrels last week. This was coherent with the previous forecasts, regardless of a drop in oil imports to the lowest they have been since 1991.

The S&P 500 removed almost all the early losses around midday, causing prices to launch off their session lows for a short time during midday trade. However, crude futures are expected to witness the same lows over again as a daily settlement was reached by U.S. crude.

U.S. WTI crude finished at US$1.12 lower, which is a 2.43% drop, to land at US$45.20 per barrel, after a drop of nearly 3% in the last session.

Brent crude futures fell 70 cents to reach US$48 per barrel. This is a 4% fall from the four-week highs that were recorded above US$50 two days ago.

Even the oil contracts were tracking low prices for gasoline. Gasoline futures fell almost 1%, adding to the 4% slip from Wednesday, between concerns of the U.S. turnout to peak as the maintenance cycle of autumn nears completion.

ICAP, North Carolina commodities specialist and oil broker Scott Shelton said that things are not looking well for November. Genscape, a market intelligence firm, said that Cushing took almost 713,000 barrels till the 3rd of November for four days, displaying a supply onslaught.