Oil delays, US crude stocks expected to rise

Oil delays, US crude stocks expected to rise
Oil delays, US crude stocks expected to rise

Around 11:25 am, Brent lost 1.40% from the previous day, to $ 85.19. In New York, the WTI dropped 1.71% to 83.20 dollars.

Oil prices retreated Wednesday without straying too far from their previous highs before the publication at 2:30 p.m. GMT of the latest data on US inventories by the EIA, expected to be higher by the market.

At around 9:25 a.m. GMT (11:25 a.m. CET), the price of a barrel of North Sea Brent for December delivery was down 1.40% from the previous day’s close to $ 85.19.

In New York, a barrel of West Texas Intermediate (WTI) for the same month dropped 1.71% to 83.20 dollars.

The two benchmark contracts, however, remain close to their multi-year records broken on Monday: WTI made a foray above $ 85 for the first time since October 2014, to $ 85.41, as Brent flirted with its previous high of 2018 touching $ 86.70.

These gains were crumbling “after the API reported that oil stocks rose” in the United States, said Avtar Sandu, analyst at Phillip Futures.

The American Petroleum Institute (API), the federation that brings together professionals in the petroleum sector in the country, reported on Tuesday an increase in commercial crude reserves of 2.3 million barrels last week.

The US Energy Information Agency (EIA), estimates deemed more reliable, will publish its own figures on Wednesday, but the market is already counting on an increase, of the order of 2 million barrels according to the median of analysts interviewed by the Bloomberg agency.

“The gains from crude are also limited by signs of a resumption of discussions with Iran on nuclear power,” resumed Mr. Sandu.

Suspended since June, these negotiations between the Islamic Republic on one side and Germany, the United Kingdom, China, France and Russia on the other, aim to save the agreement concluded in 2015 that is supposed to prevent Tehran to acquire nuclear weapons and which the United States unilaterally denounced in May 2018.

If the negotiations were to be successful, the easing of sanctions would lead to the return to the market of a large volume of black gold, which is currently under embargo.

The slight rise in the dollar, on the order of 0.35% over the past three days against a basket of currencies, did not help the crude business either, made more expensive for investors with other currencies.

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