By Srinivas Chowdary Sunkara // petrobazaar // 29-3-18
Crude Oil prices sank on Wednesday
Yesterday, Both the crude oil prices have fallen down. U.S crude futures slid by more than 1 percent while Brent was down by below 1 percent during the trading hours. Strong USD pressed the oil prices as geopolitical factor was faded into the back ground. U.S government agency reported a surprise builds in crude stocks during the last week, capped the oil prices.
Crude oil price update
U.S crude futures, WTI lost 87 cents or 1.33 percentage to close at $64.38 a barrel on Nymex while Brent dropped by 58 cents or 0.83 percentage at $69.53 per barrel on London based ICE futures Europe exchange. On Thursday, Asian markets are opened in bullish mood and trading at 0.5 percent high.
Summary of EIA report
In U.S, crude oil stocks were built up by 1.6Mb while Motor gasoline and distillate stocks were drawn by 3.5Mb and 2.1Mb respectively as per the weekly report. Another bearish news is that production was up by 26K Mb at 10.433Mbpd. Crude oil imports were increased and exports were also surged which indicated that more oil pumping into global markets is considered as a threat to OPEC pact. Quantity of crude oil inputs put into refining was also improved along with the operable capacity. Rebuilding of Stocks at Cushing hub was also considered as a bearish factor.
OPEC is set to continue cuts through 2018 into 2019 kept investor confidence to open Thursday markets in green zone. Firm dollar also supports oil prices. I feel crude prices move sideways today as the bearish stats capped the rising prices despite of OPEC efforts.
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