Oil prices fell slightly in trading on Wednesday
Record high US crude supplies caused a slight dip in oil prices on Wednesday.
US crude inventories rose 1.5 million barrels last week. That was less than forecast, but the EIA reported after eight straight weeks of supply increases, a record 520.2 million barrels are on hand.
Despite OPEC and non-OPEC member adherence to the supply cut deal, consecutive increases in US crude stock inventories have fuelled concern that demand growth may not be able to clear the global oil glut.
US West Texas Intermediate futures for April delivery settled at $53.83/barrel, down by 18 cents, or 0.3 per cent. May Brent crude futures dropped by 15 cents, or 0.3 per cent to $56.36/barrel.
Speaking with Reuters, David Thompson, executive vice-president at Powerhouse said “The EIA stats don’t offer much in the way of surprises this week.”
Thompson added “Lack of weather-generated demand for heating oil will be offset in coming weeks by agricultural demand, but with refineries coming back into service, the market looks capable of meeting any increased demand.”
