Oil plunged several percent on Thursday. They say, the bullish rally was just too aggressive. Let's trade the dip then!
Crude prices sag on record American crude stocks
On Thursday, crude prices sagged, as record American crude inventories underscored that oil markets remain bloated, notwithstanding efforts led by OPEC to reduce output and spur prices.
Brent crude futures hit $54.07, tumbling 0.5% from their last close. West Texas Intermediate crude futures slid 0.6%, reaching $50.85 a barrel.
Market participants told the drops came on the back of ascending American crude output, which bolstered inventories to record levels.
American fuel inventories as well as crude output levels are key to whether the USA will remain the world's number one crude importer, thus helping to back prices, or if its ascending output along with large stocks give greater exports to the rest of the world, which would weigh on crude markets.
Meanwhile, on Wednesday, the US Energy Information Administration reported a 1.57 million barrels surge in crude inventories, bringing total American stocks to a fresh record of 535.5 million barrels.
US retail sales will be out on Thursday, April 15, at 15:30 MT. It is a significant release for traders as it will impact the US dollar.
As the earnings season kicks in, JPMorgan is the first to impress us with the better-than-expected data!
The Reserve Bank of New Zealand will hold a meeting on Wednesday, April 14, at 05:00 MT.