View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
January 28, 2015

Sharp increase in US crude stocks encourages Brent to trade above $48

Brent crude oil futures traded above $48 a barrel today following the sharp increase in US domestic crude oil stocks.

Brent crude oil futures traded above $48 a barrel today following the sharp increase in US domestic crude oil stocks.

Reuters reported that US crude CLc1 increased 5 cents to approximately $44.50 a barrel, while Brent LCOc1 was up 26 cents at $48.73 a barrel.

"The US Energy Information Administration (EIA) revealed that domestic crude oil stocks increased by around 9 million barrels week-on-week to nearly 407 million."

Data from the US Energy Information Administration (EIA) revealed that domestic crude oil stocks increased by around 9 million barrels week-on-week to nearly 407 million.

The American Petroleum Institute (API) recently revealed that US crude inventories increased by 12.7 million barrels last week, which is three times more than the estimated volume.

Oil prices have already dropped by more than 50% since June 2014 because of growing oversupply and weak global demand.

The situation is allowing traders to buy oil now to store and sell at a higher price in the future.

Analysts estimate stockpiles to increase further as US production shows no indications of a slow-down.

Analysts at Energy Aspects were quoted by the news agency as saying: "With weak pricing and contango structures across most US grades, storage plays will continue to attract material into tanks. Until seasonal maintenance is out of the way there appears to be little incentive to do otherwise."

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