Home Commodity Market News Oil prices fall for third day on inventory build

Oil prices fall for third day on inventory build

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Oil prices fall for third day on inventory build© Reuters. FILE PHOTO: Storm clouds gather over Shell’s Pulau Bukom oil refinery in Singapore

TOKYO (Reuters) – U.S. oil prices fell for a third day on Wednesday after data from an industry body showed crude stocks rose more than expected last week, while a selloff in other commodities, stocks and bonds added to the bearish tone.

U.S. West Texas Intermediate futures () were down 1 percent, pushed below $64 at $63.87 by 0012 GMT. Brent crude () was yet to trade.

On Tuesday, U.S. crude fell 1.6 percent to close at $64.50 a barrel, the contract’s decline far outpacing a 0.6 percent drop in the price of Brent.

“Increasing concerns over the rising U.S. production continue to mount pressure on the commodity,” Mihir Kapadia, chief executive of Sun Global Investments, said.

“Over the past couple of years, U.S. producers have gained significant inroads in the global oil market industry,” he said.

The U.S. benchmark touched a low of $63.70, its weakest level in more than a week after rising strongly in recent months.

Prices on both WTI and Brent are still on track for a fifth month of gains.

But the report from the American Petroleum Institute late on Tuesday showing crude stocks rose by 3.2 million barrels last week cast a bearish pall over the market. [API/S]

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Source: Investing.com

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