WTI drops in post-settlement trade after API reports large build in crude inventories
|- API data show that crude inventories rose by 2.9 million barrels last week.
- Trump tells OPEC nations to stop raising prices.
- Institute of International Finance says Iranian oil exports continue to fall.
After starting the day on a positive note and rising all the way up to $72.72, the barrel of West Texas Intermediate lost its traction in the second half of the day and settled with small gains to settle 20 cents higher at $72.28. With the API reporting a surprise build in crude oil inventories in the U.S., the WTI lost its footing and fell below the $72 mark in the post-settlement trade. As of writing, the barrel of WTI was down 0.37% on the day at $71.97.
The weekly publication of the American Petroleum Institue revealed that crude inventories rose by 2.9 million barrels in the week to September 21 to 400 million, compared with analysts' estimate for a draw of 1.3 million barrels.
Earlier today, reports of Iranian oil supply continuing to decline supported crude oil prices. According to Reuters, the Institute of International Finance (IFF) reported that crude oil exports from Iran dropped by 0.8 million barrels per day from April to September even before the U.S. sanctions go into effect on November 4 to suggest a lower crude oil demand that supported the price increase.
However, later while speaking at the UN General Assembly in New York, President Trump, once again, voiced his concerns over rising crude oil prices and urged OPEC nations to stop raising them to limit the WTI's gains.
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