Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oil plunges as crude stocks rise by a whopping 14.4M barrels

Published 11/02/2016, 10:36 AM
Updated 11/02/2016, 10:36 AM
© Reuters.  Oil plunges as crude stocks rise by a whopping 14.4M barrels

© Reuters. Oil plunges as crude stocks rise by a whopping 14.4M barrels

Investing.com - Oil prices fell to the lowest levels of the session during North American hours on Wednesday, adding to losses after data showed that crude supplies in the U.S. rose by the most since at least 1984 last week.

Crude oil for December delivery on the New York Mercantile Exchange was down $1.34, or 2.94%, to $45.27 a barrel by 10:36AM ET (14:36GMT). Prices were at around $45.85 prior to the release of the inventory data. The contract fell to a session low of $45.05 earlier, a level not seen since September 28.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 14.4 million barrels in the week ended October 28. Market analysts' expected a crude-stock gain of 1.0 million barrels, while the American Petroleum Institute late Tuesday reported a supply increase of 9.3 million barrels.

Total U.S. crude oil inventories stood at 482.6 million barrels as of last week, which the EIA considered to be “historically high levels for this time of year”.

The report also showed that gasoline inventories decreased by 2.2 million barrels, compared to expectations for a decline of 1.1 million barrels.

For distillate inventories including diesel, the EIA reported a drop of 1.8 million barrels.

Elsewhere, Brent oil for January delivery on the ICE Futures Exchange in London sank $1.51, or 3.05%, to $46.62 a barrel, after touching a session low of $46.56, the weakest level since September 28.

London-traded Brent prices settled down 47 cents, or 0.97%, on Tuesday, amid mounting skepticism over the implementation of a planned deal by OPEC to limit production.

OPEC reached an agreement to cap output to a range of 32.5 million to 33.0 million barrels per day in talks held in Algeria in late September. However, the 14-member oil group said it won’t finalize details on individual output quotas until its next official meeting in Vienna on November 30.

The possibility that producers could walk away empty-handed from the November meeting looms large after Iraq, Iran, Nigeria and Libya all signaled they might not take part in the proposed production cut deal. Russia’s unclear stance is also fueling uncertainty.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.