Crude prices sag as worries over global fuel oversupply re-emerge
On Wednesday, crude prices dipped, pulled down by a report of soaring American crude inventories, ascending production in Nigeria as well as squabbling among producers regarding a planned production drop, which together re-ignited worries over a global oversupply.
American West Texas Intermediate crude futures were trading at $49.34 a barrel, down 1.24% from their last settlement. As for international Brent crude futures, they dropped 1.04%, hitting $50.26 a barrel.
Oil appears to be on the defensive this morning following American Petroleum Institute inventory numbers, which revealed a growth of about 4.8 million barrels against an expected soar of 1.7 million.
Due later on Wednesday, market participants are waiting for official fuel storage data from the Energy Information Administration.
EIA crude inventory figures are going to be closely watched soon. A decent leap in inventories will undoubtedly see oil pushed lower again.