Crude Oil Declined After Disappointing US Inventory Data
- Trade Magnates Team
- Nov 9, 2017
- 1 min read
Trade Magnates - Crude oil brought a halt to its bullish momentum due to disappointing US crude supplies report, as published by the Energy Information Administration (EIA) yesterday. NYMEX oil future prices rose to 56.90$ a barrel, while Brent at 63,66$ per barrel.
Overnight, crude oil prices declined on Wednesday after data showed crude supplies rose while production jumped to a record all-time high last week offsetting a larger-than-expected draw in refineries. In addition to weakening Chinese crude demand, after the Chinese crude oil imports data showed a sharp drop in the month of October and theongoing supply cuts led by OPEC and Russia.
However, the drop appears limited as a weaker US dollar amid the US tax reform uncertainty, keeps the USD-sensitive oil support. A weaker US dollar makes the USD-denominated oil cheaper for the buyers in foreign currencies.
The US crude inventories rose 2.2 million barrels for the week to Nov. 4, to 457.14 million barrels, missing expectation of 2.9 million barrels.