Oil dips as US stockpiles forecast to rise again

Crude in New York loses 1.4% while inventories in America rose by 3m barrels last week

Oil dropped as US stockpiles were forecast to have expanded for a fourth week, raising questions about Opec’s success in draining a global oversupply.

Crude in New York lost as much as 1.4 per cent. Inventories in America rose by 3 million barrels last week, according to a Bloomberg survey. Oil has struggled to regain January’s highs as equities remain weak and a stronger dollar reduces the appeal The price of the Opec basket of fourteen crudes stood at $62.81 (Dh230.51) a barrel on Tuesday, February 20, compared with $62.89 the previous day, according to Opec Secretariat calculations.

The Opec Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela). of commodities the US currency.

The Organisation of Petroleum Exporting Countries has reiterated not just its commitment to rebalancing the oil market, but possibly even extending the alliance with Russia beyond this priced in year. Yet traders’ are primarily focused on US supplies, according to Saxo Bank.

“US inventories, which are surveyed to show a rise, together with weaker stocks and a stronger dollar, are pushing oil lower,” said Ole Hansen, head of commodities strategy at Saxo. “It could signal some renewed short-term weakness.”

West Texas Intermediate for April delivery fell 72 cents to $61.07 (Dh224) a barrel on the New York Mercantile Exchange as of 10:09am London time.

Total volume traded was about 18 per cent below the 100day average. The March contract expired Tuesday after adding 22 cents to $61.90.

Brent for April settlement slipped 69 cents to $64.56 a barrel on the London-based ICE Futures Europe exchange. Prices dropped 0.6 per cent to $65.25 on Tuesday. The global benchmark traded at a $3.49 premium to WTI.