The report showed that OPEC may have already increased supplies and crude oil inventories in the US increased more than expected last week, according to government official data released on Wednesday.
WTI revenue fell 51 cents, 0.77%, to $ 65.79 in midday trade, while London Brent revenue lost 12 cents, 0.16%, to $ 74.39.
Although this was five times greater than the consensus forecast, Barani Krishnan’s senior analyst said the main departure from Wednesday’s report comes from imports, which increased by 1.2 million barrels.
He said, “This is telling me that more oil is already emerging from OPEC, no matter what the Saudis say, and it resembles what the International Energy Agency said yesterday that the market was adequately supplied.”
Krishnan added “We expect more volatility in the EIA weekly statistics, as OPEC members try to take advantage of the current high prices and vacuum in the Iranian diesel supply by increasing discretion in their exports, despite Saudi’s stance that it does not there will be preliminary growth in production. ”
Despite Wednesday’s losses, unemployment has risen this week, with WTI still on track for more than 3% profits since the US said on Monday it would end all exemptions for sanctions against Iran, demanding places to stop oil imports from Tehran starting in May or face punitive action from Washington.
He warned that “This dual Saudi presentation strategy to meet Trump’s need for lower oil prices without really meeting and persuading Russians to stop production growth as long as possible, it is unlikely to work for a long time. “/Investing.com