Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER
Oil Extends Losses on Fears of Rising U.S. Inventories, CPI Jitters
© Reuters.
By Ambar Warrick
Investing.com-- Oil prices fell on Wednesday, extending overnight losses after industry data showed U.S. crude stockpiles grew more than expected in the past week.
Investors were also wary of upcoming U.S. CPI inflation data, which could point to more rate hike risks from the Federal Reserve.
As of 2045 ET (0030 GMT), Brent Oil Futures fell 0.4% to $96.09 a barrel, while U.S. Crude Oil WTI Futures shed 0.3% and traded at $90.22. Both contracts had fallen on Tuesday, albeit slightly, as a potential supply crunch in Europe briefly supported prices.
Data from the American Petroleum Institute showed that U.S. oil inventories grew more than expected in the prior week. Stocks of crude oil, gasoline, and distillates stood at 2.16 million barrels, compared with a forecast of less than 100,000 barrels. The reading likely foreshadows a similar figure from official data due later in the day- which would mark a second straight week of unexpectedly large U.S. oil inventories.
Oil prices had plummeted last week after data showed the U.S. held crude inventories of over 4 million barrels, which was in contrast to expectations for a contraction in stockpiles.
The readings indicate that U.S. oil demand is weakening in the face of rising inflation and slowing manufacturing- which could spell more trouble for crude markets.
Slowing factory activity across the globe is also expected to weigh on crude demand in the coming months. Oil has plummeted over $40 from peaks hit when Russia began its invasion of Ukraine, as rising cost pressures across the globe severely dented demand.
Focus now turns to the upcoming U.S. inflation data, due at 0830 ET. While the reading is expected to show a mild decline in prices from last month, inflation is still expected to remain underpinned around 40-year highs.
This in turn will likely push the Fed into hiking rates further in September- a move that could weigh on economic activity and further dent oil prices.
Related Articles
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
Add a Comment
We encourage you to use comments to engage with other 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, don’t trash it.
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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.