The following is an excerpt from NICOLE FRIEDMAN | August 10, 2016 | WSJ.com |
NEW YORK—Oil prices fell Wednesday after weekly U.S. inventory data showed that domestic inventories of crude oil and petroleum products rose last week to a record high.
U.S. stockpiles of crude oil and refined products rose by 2.5 million barrels in the week ended Aug. 5 to 1.39 billion barrels, the Energy Information Administration said Wednesday. Crude inventories rose by 1.1 million barrels, versus expectations for a decline of 800,000 barrels according to analysts surveyed by The Wall Street Journal.
Global oil stockpiles stand above average levels following years of robust production in the U.S. and elsewhere.
“If we don’t start to see some inroad into this overhang of storage, the market’s going to have a hard time getting back to our recent highs,” said Gene McGillian, research manager at Tradition Energy in Stamford, Conn.
U.S. crude oil for September delivery settled down $1.06, or 2.5%, at $41.71 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, declined 93 cents, or 2.1%, to $44.05 a barrel on ICE Futures Europe.
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