December 28, 2023 (MLN): Oil prices remained under pressure on Thursday after posting the largest drop in two weeks yesterday on signs of a US stockpile buildup.
Brent crude is currently trading at $79.49 per barrel, down by 0.20% on the day. Yesterday, Brent crude slumped 1.9%.
While West Texas Intermediate crude (WTI) is trading at $73.99 per barrel, down by 0.16% on the day.
The American Petroleum Institute reported nationwide inventories rose by 1.8 million barrels, according to a report seen by Bloomberg, with levels at Cushing also expanding.
That is feeding into signs supply is topping demand as the year-end approaches.
Official prints on US inventories, as well as gauges of output and demand, are due later Thursday from the Energy Information Administration.
Crude volumes at the Cushing, Oklahoma, hub have risen for the past nine weeks, and a 10th build, if confirmed, would be the longest run of inflows since 2016, Bloomberg added.
Crude has risen about 8% since its December low as Houthi attacks on vessels in the Red Sea forced tankers and other ships to divert on longer voyages, hoisting costs.
Despite a US-led task force to protect the key waterway, carriers including Hapag-Lloyd AG still say they will avoid the route.
Although “the attacks in the Red Sea are likely to keep markets on edge,” signs of inventory builds in the US “may exert downward pressure on crude oil prices,” said Redmond Wong, market strategist at Saxo Capital Markets Ltd.
