Oil prices drop as US reports higher crude supplies | Inquirer Business

Oil prices drop as US reports higher crude supplies

/ 07:50 AM July 23, 2015

In this Monday, July 2, 2012, photo, tanker trucks take on loads of gasoline and diesel fuel at Arkansas Terminaling and Trading Inc., in North Little Rock,  AP FILE PHOTO

In this Monday, July 2, 2012, photo, tanker trucks take on loads of gasoline and diesel fuel at Arkansas Terminaling and Trading Inc., in North Little Rock. AP FILE PHOTO

NEW YORK, United States – Oil prices fell Wednesday after US government data showed higher crude stockpiles, adding to concerns about a global supply glut.

US benchmark West Texas Intermediate for delivery in September dropped $1.67 to $49.19 a barrel on the New York Mercantile Exchange, finishing below $50 for the first time since April 2.

Article continues after this advertisement

European benchmark Brent oil for September delivery fell 91 cents to $56.13 a barrel in London.

FEATURED STORIES

The US Department of Energy said US commercial crude stockpiles rose by 2.5 million barrels last week, while supplies at the closely-watched Cushing, Oklahoma hub added 800,000 barrels.

The report also showed US crude production little changed at near-record levels of about 9.6 million barrels per day.

Article continues after this advertisement

“There’s a lot of negativity in the market right now,” said John Kilduff, founding partner at Again Capital.

Article continues after this advertisement

“With the driving season winding down here and the peak demand being in its final weeks, it’s another bearish element to the story.”

Article continues after this advertisement

Analysts also cited the strengthening dollar as a drag on crude prices. Because crude is sold in dollars on global market, the commodity becomes more costly for buyers using other currencies when the greenback strengthens.

The drop in oil below $50 a barrel could have “a psychological impact” leading to further selling, according Tim Evans, analyst at Citi Futures.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: oil glut, oil prices, US stockpiles, US stocks

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.