Oil extends losses after U.S. inventory report shows crude build
BNN Bloomberg
Oil fell to a session low after U.S. government data showed a build in crude inventories.
West Texas Intermediate fell as much 2.3% to nearly slip below US$72 a barrel before stemming the slide. Stockpiles at the U.S.’s main storage hub rose to the highest since March, while total inventories rose slightly. Nonetheless, traders were heartened by glimmers of fuel demand picking up.
“Gas and diesel draws were much more than expected,” said Brian Kessens, a managing director at Tortoise Capital Advisors. “I think from an economic health situation, that’s a good indicator especially as people have feared that we’re losing some momentum.”
Crude has retreated this year as worries over Fed tightening and a potential US recession outweigh a still solid physical market and supply cuts by the Organization of Petroleum Exporting Countries and its allies. Still, Russian exports have continued to show little sign of ebbing despite Moscow saying its output curbs almost hit a pledged goal of 500,000 barrels a day.
