Oil dips ahead of stockpile data
On Wednesday, crude futures sagged, as market participants were waiting for American data on crude stockpiles as well as an upcoming gathering of number one oil producers.
In New York, crude futures for May delivery traded at $40.98, a 1.1% sag. Besides this, in London May Brent crude lost 43 cents, trading at $41.35 a barrel, retreating from its highest settlement value since December 4.
Oil prices have kept fluctuating around the level of $40, as most market participants want clarity on the outlook for world oil production. Additionally, according to the newly released data, last week American oil inventories surged up to 8.8 million barrels. The given soar suggests American output is flexible, while the official report on these stockpiles is expected due Wednesday eastern time.
Leading financial analysts draw attention to the fact that American crude production needs to get cuts to ease the global oversupply. The entire financial world believes that further production cuts would be a long-awaited sign for higher crude prices.