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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.
The European central bank will publish the main refinancing rate and make a statement on Thursday, July 16, at 14:45 MT time. Also, the ECB’s press conference will be later at 15:30 MT time.
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The Canadian central bank will announce interest rates and make a speech on Wednesday, July 15, at 17:00 MT time. Also, the BOC press conference will be later at 18:15 MT time.