oil

Oil prices dropped today amid confusion in the commodities market as investors made a rush to exit, following the release of weak data from China and the US which sparked apprehensions about global demand.

Brent crude fell $2.72 at $100.39 a barrel, while US crude slipped $2.58 at $88.71 a barrel, reported Reuters.

On Monday, the commodity complex was distressed as a result of weaker fundamentals and China’s lower-than-expected GDP growth, which dropped to 7.7% from 7.9% in the final quarter of last year, while economists had predicted eight percent growth.

In the US, crude oil stockpiles have expanded to a 30-year high as domestic output increases, with no end in sight.

US gasoline futures gave up 1.7% to trade at $2.75 per gallon, hitting the lowest level since 2010.

According to US Government data, US stockpiles of gasoline are about 4.9 million barrels over the five-year average, while demand is at the lowest seasonal level since 2003.

In a survey conducted by Reuters, analysts have predicted US crude stocks increased by 1.4 million barrels for the week ended 12 April, while distillate stocks, which include heating oil and diesel fuel, were predicted to have dropped 300,000 barrels on average last week.


Image: Crude oil stockpiles have expanded to a 30-year high as domestic output increases in the US. Photo courtesy of freedigitalphotos / think4photop.

Energy