Oil prices slide on surprise US inventory data
Oil prices dived on Wednesday after official data revealed an unexpected rise for crude stockpiles in the United States, the world's biggest energy consumer, traders said.
By Agencies |
LONDON: Oil prices dived on Wednesday after official data revealed an unexpected rise for crude stockpiles in the United States, the world's biggest energy consumer, traders said.
The market was meanwhile awaiting the US Federal Reserve's latest decision on US interest rates due later today.
New York's main oil futures contract, light sweet crude for August delivery, slumped $3.50 to $133.50 per barrel.
Brent North Sea crude for August tumbled $3.46 to $133.
The US Department of Energy said that stockpiles of crude had risen for the first time in six weeks, by 800,000 barrels, in the week to June 20. Analysts had expected a drop of 1.1 million barrels.
Oil prices could rebound later Wednesday, however, in the wake of the Federal Reserve's decision on American borrowing costs.
"The US central bank is expected to leave interest rates unchanged at 2 per cent amid disappointing data recently, which could put some pressure on the dollar and support crude futures," said Sucden analyst Andrey Kryuchenkov.
A weaker dollar sparks demand for oil as it becomes cheaper for foreign buyers.
Oil prices have almost doubled over the past year after striking record highs of close to $140 last week.
Saudi Arabia, the world's largest exporter, agreed at the weekend to raise its daily output by more than 200,000 barrels to 9.7 million.
The market was meanwhile awaiting the US Federal Reserve's latest decision on US interest rates due later today.
New York's main oil futures contract, light sweet crude for August delivery, slumped $3.50 to $133.50 per barrel.
Brent North Sea crude for August tumbled $3.46 to $133.
The US Department of Energy said that stockpiles of crude had risen for the first time in six weeks, by 800,000 barrels, in the week to June 20. Analysts had expected a drop of 1.1 million barrels.
Oil prices could rebound later Wednesday, however, in the wake of the Federal Reserve's decision on American borrowing costs.
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"The US central bank is expected to leave interest rates unchanged at 2 per cent amid disappointing data recently, which could put some pressure on the dollar and support crude futures," said Sucden analyst Andrey Kryuchenkov.
A weaker dollar sparks demand for oil as it becomes cheaper for foreign buyers.
Oil prices have almost doubled over the past year after striking record highs of close to $140 last week.
Saudi Arabia, the world's largest exporter, agreed at the weekend to raise its daily output by more than 200,000 barrels to 9.7 million.
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