Oil retreats from multi-year highs as US crude stockpiles rise

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Oil retreats from multi-year highs as US crude stockpiles rise

On Wednesday, both US and UK crude oil futures’ prices had beaten hasty retreats, vamoosing as much as 2.0 per cent from a multi-year peak, as an unprecedented uptick in US crude inventories that appeared to have bolted out of the blues, had provided the investors with a solid reason to coffer up profits following a latest leg of blistering rally.

Aside from that, a further strengthening of US Dollar following release of a better-than-anticipated ADP National Employment report, had prompted crude oil futures’ prices to make a quick exit. US private payrolls rose modestly last month with American employers creating as many as 568,000 jobs in September, helping US Dollar Index to shelve lofty gains, while developments over debt-ceiling talks had Nevertheless, US Energy Department said earlier in the day that US crude inventories had shot up to a 2.3 million barrels last week, insanely beating an estimate of an indentation of 418,000 barrels, adding to a bearish bias in crude oil futures’ prices.

However, UK crude had hit the strongest since October 2018 and US WTI crude oil futures had spiked to their highest since November 2014 on Wednesday before taking a tattering header of more than 1.5 per cent in late-afternoon European session, while the rallies were largely encouraged by a latest OPEC+ decision to continue to hike output despite a barrage of dismal factory activity data in Asia.

Crude oil loses steam as US crude stockpile rises

Citing statistics, in the day’s commodity market wind-down, UK crude oil futures’ prices 1.8 per cent to $83.47 per barrel, while US crude shed 1.9 per cent to $77.43 per barrel.

Meanwhile, addressing to a latest profit taking wave from the investors, a director at Tradition Energy in Stamford, Conn, Gary Cunningham said, “We saw some profit taking as oil had run up significantly.