MANTHANTIPS Oil prices slump 1% on bets for bearish U.S. stockpile data
Oil prices were down sharply in European trade on Wednesday, as market players awaited fresh weekly information on U.S. stockpiles of crude and refined products. The U.S. Energy Information Administration will release its weekly report on oil supplies at 14:30GMT, or 10:30AM ET, Wednesday amid expectations for a drop of 1.025 million barrels. Gasoline inventories are expected to decline by 1.063 million barrels while stocks of distillates, which include heating oil and diesel, are forecast to rise by 513,000 barrels, according to analysts. After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories rose by a surprising 2.1 million barrels in the week ended August 5. It also showed a decline of 4.0 million barrels in gasoline stocks. Meanwhile, investors looked ahead to a monthly report from the Organization of Petroleum Exporting Counties due later in the session to gauge global supply and demand levels. OPEC’s official report is expected to show that supply from the 14-member cartel has risen to a nearly eight-year high 33.41 million barrels per day in July from 33.31 million in June, due to higher output in Iran and Iraq and as production rebounds in Nigeria and Libya.