May Brent crude futures were down 59 cents at $65.93 US a barrel mid-morning Wednesday, while the front-month April contract, which expires on Wednesday, was down 60 cents at $66.03 a barrel. Both benchmarks earlier hit their highest since February 7.
Portfolio managers have cut their net long position in USA heating oil by 58 million barrels, European heating oil by 45 million barrels and US gasoline by 27 million barrels since January 23.
Crude oil futures were lower Tuesday morning ahead of USA oil inventories.
Even if the demand for oil increases (if you subscribe to the theory that states the global economy is witnessing robust growth), the supply side will flood the oil market, and it could have an adverse effect on oil prices.
Data on Tuesday from the American Petroleum Institute showed that crude inventories rose by 933,000 barrels in the week to February 23, to 421.2 million barrels.More news: Delta wouldn't upgrade the gold-winning USA curling team's seats
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Industry data on USA inventory levels are expected from the American Petroleum Institute after the market closes.
American crude explorers are driving "explosive growth" that will continue into next year, International Energy Agency Executive Director Fatih Birol said earlier in the day.
He said that "What we discussed was that price of crude oil is such that it does not result in a loss to producers and at the same time protects consuming nation's interest". Federal data from the U.S. Energy Information Administration are published midway through the trading morning Wednesday.
If you look elsewhere-and disregard the Organization of the Petroleum Exporting Countries (OPEC)-there are a lot of oil supply stories emerging. "That's enough to take us down a notch".
USA inventories have fallen almost a quarter over the last 12 months, or about 100 million barrels - the lowest in three years.
The dollar rose 0.1 percent to against the Japanese yen to 107.43 yen. According to a recent study by the EIA, under certain scenarios, total United States crude oil production could surpass 14M b/d by 2050.