By Nicole Jao
NEW YORK (Reuters) -Oil costs eased on Wednesday after authorities knowledge confirmed U.S. crude oil stockpiles rose unexpectedly final week, prompting investor issues of extra provides.
Brent crude futures settled 54 cents, or round 0.81%, decrease to $66.09 a barrel. U.S. West Texas Intermediate crude slipped 52 cents, or 0.82%, to $63.15.
Each benchmarks traded near their highest in two weeks within the earlier session, lifted by a brief lower in U.S.-China tariffs.
The benchmarks fell after knowledge from the Vitality Info Administration confirmed crude stockpiles rose by 3.5 million barrels to 441.8 million barrels final week.
Analysts in a Reuters ballot had anticipated a 1.1 million-barrel draw. [EIA/S]
Internet U.S. crude imports rose final week by 422,000 barrels per day, the EIA stated.
API trade knowledge additionally confirmed a big construct of 4.3 million barrels in crude shares final week, market sources stated on Tuesday. [API/S]
“Positively, the crude construct within the API numbers was not of assist,” UBS analyst Giovanni Staunovo stated of Wednesday’s oil worth fall.
The Group of the Petroleum Exporting International locations and allied producers, referred to as OPEC+, has been rising provide to the market.
On Wednesday, nevertheless, OPEC trimmed its forecast for progress in oil provide from the USA and different producers outdoors the broader OPEC+ group this yr.
“They don’t seem to be altering their demand profile however including extra barrels,” stated Bob Yawger, director of power futures at Mizuho. “Sooner or later, provide is simply going to swamp out demand and drill the market decrease.”
A rebound within the U.S. greenback additionally weighed on costs on Wednesday. A stronger dollar makes dollar-denominated oil costlier for traders holding different currencies, hurting demand.
(Reporting by Nicole Jao in New York, Seher Dareen in London and Jeslyn Lerh in Singapore; Modifying by Ed Osmond, Kirsten Donovan, Barbara Lewis, Andrea Ricci and Diane Craft)
