In­crea­sein US crude stock hits oil price

Yorkshire Post - Business - - MARKET REPORT -

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.

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