He said the psychological floor price is at $39.40, adding: “We might see some tug-of-war for oil prices at this level, but it all depends on the official data later this evening”.
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Stockpiles at Cushing, Oklahoma, the delivery point for WTI and the biggest US oil-storage hub, decreased by 1.12 MMbbl to 64.1 MMbbl.
On Tuesday, oil prices extended their losses with USA oil being traded for less than $40 a barrel the first time since April, on the back of concerns over excessive market supply.
Gasoline supplies fell 3.26 million barrels in the week ended July 29, the Energy Information Administration report showed.
The report also displayed that crude oil inventories increase by 1.4 million barrels the previous week.
Also supportive was Tuesday’s American Petroleum Institute report on USA inventories, which showed a 1.34 million-barrel drop in crude stocks, although the decline was about in line with analyst expectations.
USA oil prices slipped below $40 per barrel in during trading Monday, touching levels not seen in more than three months and underscoring fears that the commodity’s midyear rebound was not sustainable.
International Brent crude oil futures were trading at $42.33 per barrel, up 19 cents from their last close.
The short-term recovery faded as soon as higher prices pushed more output of crude and refined products.
Oil prices fell in Asia on profit-taking today following two days of gains, with concerns about a global oversupply keeping optimism in check. Refineries’ crude demand jumped 266,000 bpd from the prior week.
“That’s the perception and it may trade even worse if the equity markets continue to roll over”, said the Dunham, North Carolina-based broker.
Fuel stockpiles are brimming with global refineries producing huge volumes of petrol, diesel and jet fuel.
Oil traded near a four-month low in NY on signs the global supply surplus persists even as stockpile declines in the US pare the excess.
“There is just so much oil out there”.
Prices dropped below United States dollars 40 a barrel on Monday, the first time since April.
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Oil futures eased on Friday, stabilizing above three-month lows following this week’s wide swings, as the market remained caught between large stockpiles and signs of rebalancing between supply and demand.
