Oil pummels 2 per cent after surprise US crude inventory build

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Oil pummels 2 per cent after surprise US crude inventory build

On Thursday, both UK and US crude oil futures’ prices scheduled to be expired on September 20 slid as much as 2 per cent, evaporating almost all of the footings regained a session earlier, after US data had revealed a surprise crude inventory build last week, largely due to an ongoing reduction in outputs at the US refineries around the Gulf of Mexico following Hurricane Laura.

In point of fact, Thursday’s tottering of crude oil futures’ prices were mostly meaded out of a US EIA (Energy Information Administration) report released earlier on the day that said the US crude oil inventories had surged by 2 million barrels per day last week, while a persistent plunge in investors’ optimism over a likely demand crunch across the globe amid a resurgence in the pandemic outbreak had added to further strains.

Notably, both US and UK crude futures had faltered to their lowest level since mid-June earlier in the week following reveal of a media headline that the Saudi’s state-backed oil giant Aramco had trimmed its official selling rate of Arab crude for the Asian markets, pointing towards a darkening demand fundamental.

Oil totters as US IEA confirms surprise crude inventory build

Citing statistics, on the day’s commodity market curtain down, Brent crude futures’ prices were pummelled 1.8 per cent to $40.06 per barrel, while the US West Texas Intermediate crude futures’ prices had winded down the day 2.0 per cent lower to $37.30 a barrel.

Meanwhile, as the US Energy Information Administration had lowered its outlook for global oil demands for the remaining of the year to roughly 8.3 million barrels per day later this week, eventually winding up another session of sell-off waves for the crude futures’ prices, referring to a surprise US crude inventory build, President of Ritterbusch and Associates in Galena, Illinois, Jim Ritterbusch said on the day’s commodity market round off, “Today’s crude data looked bearish ...

with about the only supportive element being the fact that the 2 (million-barrel) build was less than that indicated by the API”.