Oil Drops -1.5% Amid Growing Supplies, Stronger USD
on both sides of Atlantic dives deeper in the red this Thursday,
extending heavy losses witnessed a day before, as rising US crude
supplies and Iran’s output dampened the sentiment around the black gold.
Oil extends the drop from 7-month highs
Currently, both crude benchmarks extend to the downside, with Brent down -1.66% at $ 48.12 while WTI oil drops -1.25% to $ 47.58. The oil prices face fresh offers as markets negatively react to Wednesday’s EIA crude inventory report, which showed US crude inventories grew by 1.31 million barrels over the week to May 13, against a slide of 3.14 million barrels expected.
Moreover, reports of an increase in the Iranian oil exports also intensified the downbeat momentum in oil. Iran's oil exports are set to jump nearly 60% in May from a year ago to 2.1 million bpd, further added to the already saturated oil supplies.
Also, a broadly stronger US dollar backed by hawkish Fed minutes, also weighed down on the oil prices this Thursday. Later today, oil markets will closely track USD moves ahead of US rigs count data due tomorrow.