Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil Down Over Surprise Build in U.S. Crude Inventories

CommoditiesFeb 23, 2021 11:36PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – Oil was down Wednesday morning in Asia, with investors digesting an unexpected build in U.S. crude inventories. The build was attributable to the unprecedented cold snap that hit Texas and surrounding areas during the previous week curbing fuel demand from refineries that were forced to shut down.

Brent oil futures rose 3.46% to $28.09 by 11:26 PM ET (4:26 AM GMT) and WTI futures jumped 3.92% to $24.95. However, both Brent and WTI futures remained above the $60 mark.

U.S. crude oil supply data from the American Petroleum Institute (API) showed a build of 1.026 million barrels for the week ending Feb. 19. Forecasts prepared by Investing.com had predicted a 5.372-million-barrel draw, and API recorded a 5.8-million-barrel draw the week before.

Investors now await crude oil supply data from the U.S. Energy Information Administration, due later in the day.

“The key question is how quickly does U.S. oil supply recover. It looks like supply will recover faster than refineries, and supply is going to outpace demand in the next few weeks. That will give negative weight to the market,” Commonwealth Bank analyst Vivek Dhar told Reuters.

Wednesday's downward trend sees the black liquid press pause on a recent rally of more than 26% to 13-month highs for both Brent and WTI futures since the start of 2021.

Also giving prices a boost was the supply disruption in the U.S. and the supply discipline maintained by the Organization of the Petroleum Exporting Countries and allies, or OPEC+. Saudi Arabia also took the lead by implementing an extra one-million-barrels-per-day cut earlier in 2021.

Losses were capped, however, by global stimulus packages to bolster economic growth, increasing investor appetite for commodities and continued hopes that the COVID-19 vaccines rollout will lead to eased lockdown restrictions globally.

Oil Down Over Surprise Build in U.S. Crude Inventories
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email