Oil extends fall on surprise US crude inventory build, trade deal concerns

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Oil extends fall on surprise US crude inventory build, trade deal concerns

On Wednesday, the 30th of October 2019, both UK and US crude oil futures’ prices crumbled for the fourth straight session in a row following an unprecedented US crude inventory build, while a possible delay to rubberstamp an interim Sino-US trade deal following Chile’s postponement of APEC summit due to violent protests against economic inequality in the resource-rich South America’s most stable country had added to investors’ worries and renewed demand concerns.

Nonetheless, late on Wednesday (October 30th) session, a sharp decline in crude oil prices were capped following TC Energy Corp.’s comment that it would be temporarily halting its Keystone crude oil pipeline, which used to channel roughly 590,000 barrels of crude oil per day over a spill in the North Dakota.

Meanwhile, referring to an unexpected rebound in crude oil stockpile build, a director of commodity research at Clipper data, Matt Smith said on Wednesday’s (October 30th) market wrap-up, “A strong rebound in Canadian imports and another SPR release has encouraged a build to crude inventories.

Tempering the bearish influence of the solid crude build are draws to both distillates and gasoline amid a tick higher in implied demand. ” Citing statistics, on Wednesday’s (October 30th) market wrap-up, UK crude oil futures’ price tumbled 1.6 per cent to settle down at $60.61, while US West Texas Intermediate crude oil futures rounded off the day 0.9 per cent lower to $55.06 per barrel.