Oil prices pressured by rising inventories
PKVerleger LLC President Philip Verleger on BP's big quarterly profits and the state of the oil sector.
U.S. crude oil futures fell on Wednesday, pressured by indications of more ample supplies.
Losses started early in the session after the American Petroleum Institute (API) reported on Tuesday weekly crude oil inventories increased by 5.6 million barrels. Wednesday, the Energy Information Administration (EIA) confirmed a weekly build, but by 3.8 million barrels. Analysts surveyed by S&P Global Platts forecast crude stocks would have declined by 2.4 million barrels in the prior week.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CL:FUT | NO DATA AVAILABLE | - | - | - |
Data from the U.S. Energy Information Administration (EIA) is more highly regarded than the API because the latter collects storage data “at will” while the EIA, a government agency, mandates that the data is shared.
In July, U.S. crude oil futures fell by 7%, their biggest monthly decline since July 2016, according to Reuters. Meanwhile, a Reuters survey found that OPEC oil production reached a 2018 high in July.
In June, OPEC oil ministers reached a deal to increase oil production after prices rallied to a 3 1/2 year high.