WTI reverses gains on unexpected increase in US crude stocks
|Crude oil prices lost their bullish momentum in the post-settlement-trade after the American Petroleum Institute's weekly report revealed a surprise in crude oil stocks in the United States. After inching higher towards the critical $65 mark during the NA session and settling nearly $1 higher, the barrel of WTI plummeted down to $64.30 with the knee-jerk reaction to the report. As of writing, the barrel of WTI was trading at $64.45, still up 1.4% on the day.
Following nine straight weeks of drawdowns, crude oil inventories in the U.S. increased by 4.8 million barrels in the week ending January 19 to 416.2 million, surpassing the experts' estimate of a 1.6 million barrels decrease.
Earlier today, comments from OPEC officials fueled a sharp rally in crude oil prices. According to CNBC, Saudi Arabia's energy minister Khalid al-Falih told reporters that there was an acceptance that the OPEC deal should extend beyond 2018. Moreover, in an interview with Reuters at the World Economic Forum in Davos, Qatari Energy Minister Mohammed al-Sada said that there was an excellent opportunity for OPEC and non-OPEC members to continue cooperation beyond 2018.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.