Oil sags amid surging American crude stocks
On Thursday’s Asia trade crude futures dropped, with American crude achieving its lowest value for two weeks, thus reacting to growing concerns of global oversupply right after US inventories surged to its record high.
The given soar in American crude oil stocks arose notwithstanding seasonal refinery utilization, while a leap in the dollar index applied further pressure on crude prices.
Brent crude futures dipped to $39 per barrel, a 26-cent decrease. The front-month contract for American crude futures sagged 43 cents, trading at $37.89.
Leading financial analysts are assured that crude prices will keep fluctuating for the rest of the year.
American crude stockpiles managed to surge by approximately 2.3 million barrels, so now the stockpiles boast up to 534.8 million barrels.
Meanwhile, China keeps growing demand on this crucial commodity and it will most likely offset descends in American crude intake figures. This year, China is on the verge of importing up to 7.5 million barrel per day, thus outclassing America as the number one crude importer.