Receive our newsletter – data, insights and analysis delivered to you
  1. News
February 17, 2015

Oil drops below $62 ahead of US stocks data

The price of Brent crude oil fell below $62 a barrel on Wednesday after gaining more than 1% in the earlier session.

The price of Brent crude oil fell below $62 a barrel on Wednesday after gaining more than 1% in the earlier session.

Reuters reported that Benchmark Brent crude futures were down 83 cents at $61.70 and US crude declined 60 cents $52.93 a barrel.

Analysts said that the drop was in response to increasing prices of the last two weeks, which they say was overblown.

"US refinery outages, through seasonal maintenance and industrial action, will weaken US crude demand, exacerbating the crude stock excess in the near term."

Oil prices have increased by more than 35% since reaching a six-year low of $45.19 earlier in 2015 due to reduced industry investments and declining rig counts in the US.

BNP Paribas analysts were quoted by the news agency as saying the recent surge in prices was premature given record-high US crude stocks.

Oil strategists Gareth Lewis-Davies and Harry Tchilinguirian said in a note to traders: "US refinery outages, through seasonal maintenance and industrial action, will weaken US crude demand, exacerbating the crude stock excess in the near term."

Content from our partners
How the North of Tyne region is leveraging its legacy to define its future
Q&A with Chevron Lubricants’ Paul Sly, global industrial OEM specialist, and Nathan Knotts, global brand technical manager
The important role of antifoam agents in oil-gas separation and amine treating

A preliminary survey by Reuters has revealed that US commercial crude oil stockpiles are already at their highest since records began and are estimated to have increased again last week by 3.1 million barrels.

The American Petroleum Institute is due to unveil US stocks data later today.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU