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21 Jan 2016
Oil drops again as inventories likely to climb
FXStreet (Mumbai) - After a brief recovery seen during Asia, both crude benchmarks came under renewed selling pressure in the European session as nervousness grew ahead of the weekly EIA inventory report.
Oversupply worries continue to weigh
Currently, WTI trades 1% lower near 28, while the Brent oil drops -0.70% to 27.68. Oil prices resumed the downtrend this session following mounting expectations that the EIA report is expected to show growing crude stockpiles.
The EIA report is expected to show crude stockpiles in the US to have risen by 3.264 million barrels in the week to January 15, following a gain of 234,000 barrels a week before.
Moreover, apart from persisting global oversupply worries, rising global growth concerns, especially China’s, markets are worries over the demand prospects from the world’s second largest oil consumer.
Meanwhile, the American Petroleum Institute (API) report on Wednesday showed US crude reserves rose more than expected last week. Crude inventories rose by 4.6 million barrels in the week to Jan. 15 to 485.2 million, well above expectations for an increase of 2.8 million barrels.
Oversupply worries continue to weigh
Currently, WTI trades 1% lower near 28, while the Brent oil drops -0.70% to 27.68. Oil prices resumed the downtrend this session following mounting expectations that the EIA report is expected to show growing crude stockpiles.
The EIA report is expected to show crude stockpiles in the US to have risen by 3.264 million barrels in the week to January 15, following a gain of 234,000 barrels a week before.
Moreover, apart from persisting global oversupply worries, rising global growth concerns, especially China’s, markets are worries over the demand prospects from the world’s second largest oil consumer.
Meanwhile, the American Petroleum Institute (API) report on Wednesday showed US crude reserves rose more than expected last week. Crude inventories rose by 4.6 million barrels in the week to Jan. 15 to 485.2 million, well above expectations for an increase of 2.8 million barrels.