Oil slips further below $56 on report of increase in US stocks
Oil was also pressured by a strong US dollar after Fed chair Janet Yellen signalled a faster pace of interest-rate rises
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 achieved record compliance with its supply-cut accord. US inventories rose 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) official supply report. "The inventory trend in the US raises doubts about whether the Opec production cuts have actually resulted already in a tighter supply situation," said Carsten Fritsch, an analyst at Commerzbank. Brent crude was down 13 US cents at $55.84 by 10.40am GMT, half its level of mid-2014, when a global glut started a collapse in prices. US crude fell 23c to $52.97. To support prices, oil cartel Opec and other producers including Russia are cutting output by almost 1.8-million barrels per day in the first half of 2017. Although Opec has made a strong start i...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.