Oil Drops -1.5% Amid Growing Supplies, Stronger USD
Oil benchmarks
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.
