Oil pares revenues amid US rising supplies
On Thursday, oil surrendered earlier revenues following worries over a lingering oversupply. Analysts expect volatility in the short-term, because market participants keep fluctuating between declining output and surging inventories.
In New York June delivery sweet and light crude futures were worth $45.13, down 0.8%, while June Brent oil futures showed the same decline at $46.79 a barrel.
Crude prices hit a new year’s peak overnight in wavy trade after the Fed’s officials left interest rates intact, showing less anxiety over the US economy’s health.
Market participants need to recover from a recent relatively neutral Federal Open Market Committee statement as well as the overall improvement in fundamental will most likely encourage investors to beef up their already buying trading positions.
However, data of a bigger-than-expected growth in American crude inventories has powered some risk-averse behavior in the financial markets.
According to the Energy Information Administration by April 22 American crude stocks expanded by approximately 2 million barrels.