Oil prices took some of their biggest losses of the last month on Wednesday as data showed U.S. stockpiles keep rising and production is holding strong, which thwarted recent bets that those trends may be winding down.
Total commercial stocks of oil and refined fuels rose by 9.9 million barrels to 1.354 billion barrels as of Friday, the U.S. Energy Information Administration said. It is a record high, buoyed almost solely by crude, which added 9.4 million barrels for the week. That addition was more than three times the size of analysts’ expectations, and also outpaced industry estimates and a strong draw from gasoline stockpiles.
Total oil storage levels have now grown 10 out of the last 13 weeks, and the latest record dates back to 1990. Crude stocks alone hit 532 million barrels, a record of its own. In monthly data, which don’t line up exactly with the weekly data, inventories last exceeded 500 million barrels in 1930.
On Tuesday, Qatar said that OPEC’s planned meeting on April 17 should attract the world’s major producing nations. But two of the cartel’s members, Iran and Libya—both with some of the biggest potential for ramping up production—appear not to be coming, and it could undermine the production freeze if they don’t participate, analysts have said. However, both Russia and Saudi claims the meeting is going to freeze the global production whether Iran or other small cartels will join or not.
Since February the oil priced tanked to the lowest level in this year, exporters are working and negotiating together on the problem of oversupply. Several meetings plan to take place in this season and targets at frizzing the production. Meanwhile, the EIA still reports the increasing inventory as historical high. The factor that dominates the oil market flows into the fact rather than the old day’s expectation from the greedy cartels.
Oil price cashed and get into a level almost below 40 per barrel. The oil market switched from long to shot so quick that based on the fear and greedy from all the sides that in the game.