Oil Declines After Report Points to Increasing U.S. Stockpiles
Bloomberg
Published Oct 28, 2020 00:34
Updated Oct 28, 2020 01:18
(Bloomberg) -- Oil retreated back below $39 a barrel after an industry report pointed to a bigger-than-expected increase in U.S. crude stockpiles, offsetting supply disruptions from Tropical Storm Zeta.
The American Petroleum Institute reported crude inventories expanded by 4.58 million barrels last week, while gasoline stockpiles rose for a second straight week, according to people familiar. Government figures are due Wednesday. Oil rallied on Tuesday after almost half of U.S. Gulf output was shuttered ahead of Zeta, which is expected to make landfall in Louisiana late Wednesday.
Oil is testing the lower end of its recent trading range as the dollar strengthened and as coronavirus cases climb across Europe and the U.S., raising concerns the fragile demand recovery may be derailed. The market is also facing rising supply from Libya, presenting OPEC+ with some tough decisions on the future of its output cuts when the producer group meets at the end of next month.
See also: BP (NYSE:BP) Warns of Long ‘Slog’ to Recovery After Surprise Profit
U.S. gasoline inventories expanded by 2.25 million barrels last week, while crude supplies at the key storage hub of Cushing climbed by 136,000 barrels, according to the API. The median estimate in a Bloomberg survey forecast nationwide crude stockpiles increased by 1.5 million barrels
©2020 Bloomberg L.P.
Get The App
Written By: Bloomberg
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.