October 23, 2016

MANTHANTIPS:- Oil down 1 percent on glut worry, API cites surprise U.S. crude build

Oil prices fell 1 percent on Tuesday, extending losses in post-settlement trade after preliminary data showed a surprise U.S. crude stockpile build last week, heightening worries about a global petroleum glut. The market also lost the previous day’s upward momentum as speculation fizzled that the Organization of the Petroleum Exporting Countries and other oil producers would embark on another round of talks on price cooperation after their failed effort in April. Trade group American Petroleum Institute (API) reported U.S. crude stockpiles rose by 2.1 million barrels during the week to Aug. 5. Analysts polled by Reuters had expected a 1 million-barrel drawdown instead. The U.S. Energy Information Administration will issue official inventory data on Wednesday (EIA). “To make a significant difference, you need a net draw of 1 or 2 million barrels across the crude, gasoline and distillates balances,” said Phil Davis, trader at PSW Investments in Woodland Park, New Jersey. “I think you’ll see WTI going back below $40 in the next couple of weeks and fall will likely be a terrible time for oil.”




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