Oil slips as report shows big increase in US stock
Brent falls to $55.63 after American Petroleum Institute announces that US inventories rose more than expected last week
London — Oil slipped further below $56 a barrel on Wednesday as an industry report showing a large rise in US crude inventories signalled ample supply, even as Opec achieves record compliance with its supply-cut accord. US inventories rose by a larger than expected 9.9-million barrels last week, the American Petroleum Institute (API) trade group said on Tuesday, ahead of the Energy Information Administration’s (EIA’s) official supply report. "Should this figure be confirmed by the EIA later today, US crude stocks will have risen to a fresh record high," said Stephen Brennock of oil broker PVM. Brent crude was down 34c at $55.63 by 9.49am GMT, half its level of mid-2014, when a global glut started a collapse in prices. US crude fell 39c to $52.81. To support prices, oil cartel Opec and other producers including Russia are cutting output by almost 1.8-million barrels a day in the first half of 2017. Although Opec has made a strong start in complying with the cuts, rising US stocks and...
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