Oil Eases-Off 2016 Peaks as Stockpiles Hit Record Highs
on both sides of Atlantic retreated after a two-day rally to fresh
yearly tops as a bigger than expected rise in the US inventories
continue to dampen the sentiment around the black gold.
Oil back in the red
Currently, both crude benchmarks are seen retracing, with WTI down -0.53% to $ 45.09 while Brent oil slips -0.58% to $ 46.66. Oil prices reversed a part of yesterday’s gains and now keep losses as resurgence of oversupply fears after the US EIA data showed that the crude reserves increased more than expected last week.
The EIA reported a rise of 2 million barrels in US crude inventories last week, hitting an all-time peak of 540.6 million barrels, and coming in higher than the 1.4 million barrels gain expected.
However, the losses in the black gold remain capped in response to broad based selling in the US dollar, as the greenback remains undermined by extensive USD/JPY sell-off. Oil traders now look forward to the US advance GDP data for fresh moves on the US dollar, eventually impacting the dollar priced-in oil.