LONDON: Oil eased below $106 a barrel yesterday after
U S crude oil stocks swelled to the highest level in more than two decades and dented the outlook for demand in the world’s top consumer.
Data from industry group the American Petroleum Institute showed a sharp rise of 5.1 million barrels in crude inventories last week, far higher than forecasts of a 1.5 million-barrel rise.
The U S Energy Information Administration (EIA) later yesterday could show a rise of 1.4 million barrels, according to a Reuters poll of analysts.
Brent crude futures slid 61 cents to $105.62 a barrel by 1221 GMT, while U S crude fell 55 cents to $93.65.
“The actual physical demand, as evident from the wet barrels market, remains subdued,” said VTB Capital oil and commodities strategist Andrey Kryuchenkov.
“After a few days of short covering the oil complex is starting today’s session on the defensive after a bearish API fundamental snapshot along with a weak demand projection by the EIA,” said Dominick Chirichella of Energy Management Institute.
“The fundamentals are becoming more bearish but the technicals are improving slightly.”
Reuters
