Oil declines on soaring American fuel stocks

Oil declines on soaring American fuel stocks

On Wednesday, crude dived because refined product inventories in America rallied in what the market interpreted as a true indication of lackluster demand.

American West Texas Intermediate crude futures hit $57.37 a barrel, sinking 0.4% from their previous settlement.

As for Brent crude futures, they lost 0.4% reaching $62.62 a barrel.

Market participants told that the lower prices emerged after a report by the American Petroleum Institute had pointed to a 9.2 million barrel leap in gasoline stocks by December 1 as well as a soar of 4.3 million barrels in inventories of distillates, including heating and diesel oil.

The very perception that the higher fuel stocks hinted at weak demand overshadowed the fact that crude inventories inched down by 5.5 million barrels reaching 451.8 million.

Robust global demand along with tight supplies might bring Brent crude to $70 a barrel by mid-2018, as some financial experts foresee.

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