Oil prices continued to fall after the US Department’s of Energy weekly data showed an increase in total reserves of oil and petroleum products to a new record high.
Inventory data for the week of 13-19 August grew by 6.6 million barrels to 1.4 billion barrels, and it signals the preservation of oversupply in the market.
In the reporting week, US crude oil inventories rose by 2.5 million barrels, while analysts had expected a small decrease in stocks.
Inventories of gasoline, distillates (including diesel) propane and ethanol also rose.
Total stocks of oil and oil products “all continue to grow,” stated Jim Ritterbusch of Ritterbusch & Associates. Usually at this time of the year crude oil stocks are reduced, since refineries are actively processed oil into gasoline to meet demand. “This growth is unusual,” – added the analyst.
US domestic oil production fell to 49,000 barrels a day to 8.5 million barrels a day. Last week production unexpectedly rose, but the Energy Information Administration Energy explained this by a “change in algorithm”.
On Tuesday, oil prices rose amid reports that Iran intends to participate in the OPEC meeting scheduled for September, to discuss coordinated production constraints. Similar negotiations that took place in April, ended without result, because Iran refused to limit production.
Many analysts still showing skepticism about Iran’s participation in the agreement.
The cost of the October futures for US light crude oil WTI fell to 46.45 dollars per barrel.
October futures price for North Sea petroleum mix of Brent crude rose to 48.68 dollars a barrel on the London Stock Exchange ICE Futures Europe.
The post Oil fell on US stocks data appeared first on forex-analytics.press.