Oil prices traded lower in Asia after the U.S. Energy Information Administration forecast that crude oil inventories unexpectedly surged last week.
U.S. Crude WTI Future fell 0.5% to $57.84. Also, International Brent Oil Futures dropped 0.4% to $62.79.
The EIA said oil inventories increased 1.572 million barrels for the week of Nov. 22. versus analysts’ expectations for e drop of 418,000.
According to an analyst, imports rose up a bit while refining fixed almost 90% of capacity, so the bulls have not got the numbers yet.
Krishnan added after last week’s a bit miss on the crude build numbers, this week, the market completely missed the direction on the crude storage.
The EIA said gasoline inventories climbed by about 5.1 million barrels, compared to expectations for an increase of 1.2 million barrels.
Distillate stockpiles also in line with an increase of 725,000 barrels. This is below the forecast increase of 750,000 barrels.
Separately, Baker Hughes forecast that U.S. oil drillers decreased the number of drilling rigs for a record 12 months in a row.
Drillers decline three oil rigs in the week of Nov. 27, which brought the count down to 668, lowest since April 2017.
Meanwhile, U.S.-China tensions escalated once again after U.S. President Trump interim two bills backing Hong Kong protesters into law.
Trade talks with Beijing will likely complicate because of the move. Beijing has repeatedly denounced the U.S. for meddling in its internal affairs. China said the movement pointed to the sinister intentions and hegemonic nature of the U.S.
The two nations were getting close to signing a first trade deal. Trump said earlier this week that they were in the final touches of the agreement.
Oil Prices Falls after U.S. Inventory Build, New Output Record
Oil prices dropped, extending losses from the recent session after official data showed U.S. crude and gasoline stock increased. This is against expectations as output hit a record.
Brent crude futures cut 18 cents, or 0.3%, at $63.88 a barrel. It also fell by 0.3% on Wednesday.
West Texas Intermediate crude dropped 24 cents, or 0.4%, to $57.87. It fell 0.5% in the recent session.
Crude stockpiled in the U.S. grew 1.6 million barrels last week as output hit a record high of 12.9 million bpd. Also, refinery runs slowed, according to the EIA. Analysts reported a fall of 418,000 barrels.
More bearish rose 5.1 million barrels in gasoline stocks. This is higher than the forecasts of 1.2 million-barrel gain.
OANDA’s Senior market analyst said high U.S. crude inventories seen oil prices move in Asia. Contrarily, dips are likely to be limited as the U.S. holiday offsets activity.
Oil prices rose this week on expectations that China and the U.S. would soon interim a phase one deal. It will put an end to their almost 17-month trade dispute.
Forces based in Eastern Libya said they compelled rival factions from the 70,000 bpd El Feel oilfield. This is after attacking the area with airstrikes, leading to output being halved and increasing worries on supply.