Visitors Now:
Total Visits:
Total Stories:
Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Oil Plunges Under $46 As U.S. Crude Reserves Unexpectedly Surge

Wednesday, November 2, 2016 3:41
% of readers think this story is Fact. Add your two cents.

(Before It's News)

oil-tankFrom OilPrice.com: This week’s American Petroleum Institute (API) reported a massive 9.3 million barrel build in United States’ crude oil supplies – the largest increase since March of this year.

Experts polled by ZeroHedge expected a seasonally consistent 1.54-million-barrel build, but instead, API figures show the largest jump in inventories for eight months.

Distillate supplies saw the sixth straight week of declines, but supplies at Cushing, Oklahoma saw the largest spike in three months.

Gasoline supplies experienced the largest decline in two months, down 3.5 million barrels against the more modest one-million-barrel drop that was forecasted.

West Texas Intermediate crude prices sank 1.13 percent with the report’s release, stabilizing at $46.33. Brent prices traded down 1.42 percent at $47.92 at the time of this article’s writing. Oil had rallied earlier in the day on a slipping dollar, and after Colonial Pipeline had to shut down its main pipeline for a second time in as many months following an explosion. WTI had reached as high as $47.35 on Tuesday.

ZeroHedge noted that domestic crude inventories are still 29 percent higher than the seasonal average.

“The global glut continues to march on,” Phil Streible, senior market strategist at RJO Futures in Chicago, told the economics blog.

Tomorrow’s official inventory report from the Energy Information Administration (EIA) will determine whether the API’s numbers are accurate, and will no doubt swing markets back upward should the EIA determines there was in fact a more modest build.

The United States Oil Fund LP ETF (NYSE:USO) fell $0.19 (-1.80%) to $10.38 per share in premarket trading Wednesday. Year-to-date, the largest ETF tied to crude oil prices has declined 3.91%.

This article is brought to you courtesy of OilPrice.com.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.