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PT Solid Gold Berjangka | Oil Holds Near Fourth-Month Low on Signs of Rising US Stockpiles

01:34 05 June in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP
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Minyak Oil, PT SGB Solid Group SG Berjangka Solid Gold Berjangka

Solid Gold Berjangka | Oil held losses near a four-month low as an industry report pointed to an increase in US crude stockpiles, adding to bearish sentiment compounded by OPEC+’s plan to boost supply.

The American Petroleum Institute reported US inventories expanded by 4.1 million barrels last week, according to people familiar with the data. Brent traded above $77 a barrel after closing lower for a fifth session on Tuesday, while West Texas Intermediate slipped to near $73.

The API also reported crude stockpiles increased at the storage hub at Cushing, Oklahoma, where the US benchmark is priced. There was also a large build in nationwide gasoline and distillate inventories.

Oil has tumbled by more than 5% this week following a decision by OPEC+ on Sunday to start unwinding supply cuts in the fourth quarter, despite concerns over demand and higher output from outside of the group. Traders who rely on trend-following algorithms have compounded the selloff.

While the Organization of the Petroleum Exporting Countries and its allies have spooked the market with their decision, RBC Capital Markets LLC predicts the group will “hit the kill switch” on returning supply if weakness persists. Most analysts had expected OPEC+ to extend curbs through to year-end.

Brent for August settlement was 0.2% lower at $77.37 a barrel at 8:20 a.m. in Singapore. WTI for July delivery dipped 0.3% to $73.05 a barrel.

Source : Bloomberg