WTI crude fell for a fifth day near a two-week low amid low demand and increased stockpiles. The Energy Information Administrations oil reserves report is scheduled for release in the morning. The industry-funded American Petroleum Institute said that U.S. crude inventories gained 1.1 million barrels last week and according to a Bloomberg survey stockpiles may climb with a further 450 000 barrels in todays U.S. government report. Bad news about Europes second biggest economy slipping into recession and Italys GDP falling more than expected laid further pressure on the Euro, strengthening the greenback and influencing oils pricing.
Jonathan Barratt, chief executive officer of Barratt’s Bulletin, a commodity newsletter in Sydney, said for Bloomberg: “Inventories are high. Given that there are no geopolitical issues at the moment, oil should drop.” He predicted that West Texas Intermediate crude has buying support at $92.50 a barrel.
The industry-funded American Petroleum Institute reported that U.S. crude inventories rose by 1.1 million barrels last week, while gasoline stockpiles declined by 480 000 barrels. Distillate fuel inventories gained 1.9 million barrels, the institute said. API’s data however is considered as less reliable than EIA’s statistics as it is based on voluntary information from operators of refineries, pipelines and bulk terminals.
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