Oil inches down after gaining momentum

Oil inches down after gaining momentum

Oil prices extended their losses for a second day straight after reaching heights of seven years at the onset of the week. It happened after it registered a jump in the US crude inventory. 

Brent oil futures slipped to USD 82 after losing 2.23 per cent at 4:01 AM GST (12:01 AM ET). Moreover, WTI futures also dropped to USD 81.03, losing 1.97 per cent. 

The data of US crude supplies from the EIA (US Energy Information Administration displayed a 4.267 million barrel build. Moreover, as per the forecast, it was predicted 1.914 million barrels. Notably, 431,0000 barrel was drawn the previous week. 

The crude supplies data that was released by the American Petroleum Institute a day before exhibited a 2.318-million-barrel build

Citi Research commodities analysts stated that the hefty EIA stock build was backed by a huge jump in crude oil’s net imports and sluggish refinery processing. It was mentioned in a note. 

Meanwhile, EIA data also displayed that gasoline stocks reduced by 1.994 million barrels, which were lowest in four years, even after the United States consumers are challenged with hiking prices

On the other side, crude storage has depleted the least in three years at the hub of WTI in Cushing, Oklahoma. The futures contracts that are longer-dated displayed that supplies are likely to stay low for months to come. 

Meanwhile, crude storage is the most depleted in three years at the WTI delivery hub in Cushing, Oklahoma. The prices for longer-dated futures contracts showed that supplies will stay low for months.

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