Fundamental Comment

Oil trades lower after more than forecast rise in US crude inventories


Oil prices traded lower on Wednesday after the release of a report showing a more than forecast rise in U.S. crude stockpiles last week.  

The Energy Information Administration (EIA) report signaled a rise by 5 million barrels in U.S. crude inventories in the week ended March 9, following a 2.4 million-barrel increase a week earlier. Analysts had estimated a rise by 2.2 million barrels.

U.S. crude stocks were up by 1.156 million barrels last week, according to industry report released by the American Petroleum Institute (API) late Tuesday.

A report due on Friday by oilfield services company Baker Hughes will provide an update on the number of rigs drilling for oil in the United States.

Crude oil futures traded lower at $60.56 a barrel after opening today at $60.85, while Brent crude futures traded at $64.00 a barrel.

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