Increasein US crude stock hits oil price
OIL EDGED further below $37 a barrel yesterday as an industry report showing a rise in US crude stockpiles to a new record countered support from producer efforts to tackle a supply glut.
US crude inventories jumped by 9.9 million barrels last week, the American Petroleum Institute (API) said, much more than the 3.6-million-barrel increase analysts had forecast.
Global benchmark Brent crude was down 33 cents at $36.48 a barrel.
On Tuesday, it reached $37.25, the highest in almost two months. US crude, also known as WTI, was down 71 cents at $33.69.
“The strong inventory build reported by the API would explain why WTI is falling more than Brent,” said Carsten Fritsch, analyst at Commerzbank in Frankfurt.
Brent has risen 35 per cent from a 12-year low of $27.10 hit on January 20, adding to expectations that further drops may not be on the cards.
Meanwhile, Russian President Vladimir Putin said domestic oil producers have agreed to keep
line with this year’s oil output in January levels, as Moscow seeks to prop up falling energy prices.
“On the whole, an agreement was reached that we will keep (2016) oil output at the January level,” he told a government meeting about the outcome of Tuesday’s gathering with Russian oil producers in the Kremlin.