- Weekly API report shows a 629,000 barrels increase in U.S. crude stocks.
- WTI comes under selling pressure after settling for the day at $68.08.
Crude oil met a fresh selling wave in the post-settlement trading hours after the weekly data released by the American Petroleum Institute showed a surprise build in crude oil stocks in the United States. The barrel of West Texas Intermediate, which was flat on the day when it settled near $68, broke below $67 and was last seen trading at $66.70.
The API on Tuesday announced that crude inventories increased by 629,000 barrels during the week ending July 13 to 410.7 million to surpass the Reuters' estimate for a decrease of 3.6 million barrels. Further details of the report revealed that refinery crude runs dropped by 279,000 barrels per day.
Earlier today, crude oil prices extended their losses after the oil production in Libya rebounded with eastern ports reopening. However, news of Venezuela shutting down two major crude upgraders for scheduled maintenance paved the way for a late recovery. "Every time there's an update that the situation in Venezuela is, in fact, worsening, it props up the market," John Kilduff, a partner at Again Capital Management in New York, told Reuters on Tuesday.
On Wednesday, investors are likely to remain focused on the developments in Libya and Venezuela ahead of the weekly EIA stock report, which is expected to show a 3.5 million barrels draw in crude inventories, scheduled to be released in the NA session.
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