Crude Extends Losses As Fed Minutes And Crude Inventories Weigh On Price

Today, Thursday, Crude oil is extending its biggest decline in three months seen the previous session, as the disagreement among U.S. Federal Reserve officials over the monetary policy and the rise in U.S. crude stockpiles are weighing on prices.

– Crude is trading at the time of writing around the $ 94.50 a barrel level, compared with the opening at $94.77

– The highest for crude at the time of writing is at $94.88 and the lowest is at $94.29

During the latest Federal Reserve meeting, some policymakers expressed doubts onthe Fed`s bond-buying program . This triggered worries of a possible end of the program earlier than anticipated, pushing the U.S. dollar strongly to the upside.

– The U.S. dollar is trading at the time of writing around the 81.27 level from the opening at 81.04, while the euro fell to 1.3250 levels .

– Oil prices tend to move inversely against the dollar, as it reduces the appeal of the dollar dominated commodities.

Weighing on crude prices was the rise in U.S. crude stockpiles for the sixth week in seven, according to the American Petroleum Institute (API). Inventories gained 2.96 million barrels last week, from the 1.8 MB expected to 372 million, the highest level since December.

– Brent is trading at the time of writing around the $ 115.06 a barrel, after falling 0.47%

Extending losses is also due to the fall below support levels on technical charts which has triggered more sell orders, while markets are awaiting the oil inventories data from the United States later today and the talks on Iran`s nuclear program next week for price direction.

The Energy Department is scheduled to release its inventory report today, a day later than usual due to the Presidents Day holiday on Monday February 18. The report may indicate supplies rose 2 million barrels.

– Natural gas is trading at the time of writing at $ 3.261 per 1,000 cubic feet after falling 0.55%

– eating oil is trading at $ 3.1463 a gallon after falling 0.32%

– Gasoline is trading at the time of writing at $ 3.041 a gallon after falling 0.60%

Keeping oil prices lower on Thursday is news of a potential rise in Saudi Arabia`s oil output. The world`s top oil exporter might “raise its oil output in the second quarter to assure higher demand from China and feed economic recovery elsewhere”.