US Crude Stockpiles Increase By 6.2 Million Per Barrels As Oil Prices Drop
Recent reports reveal that the US crude stockpiles have increased by 6.2 million per barrels as oil prices have dropped. On Wednesday, while the oil prices remained steady, they surrendered to their early gains after data revealed that further hikes in the US shale supply could affect the stockpiles whereas the hikes were also offset by an increase in Iranian exports.
Moreover, the market remained underpinned by the fact that the US will re-impose sanctions on the Iranian economy. When the news broke, the US crude stockpiles increased by 3.4 million barrels during the week on March 27th. The data was revealed by the American Petroleum Institute.
On Wednesday, the oil prices continued to remain steady, as they surrendered their early gains once the data showed that the US shale supply increased whereas the Iranian exports also rose.
Brent crude oil futures declined by 22 cents, as they settled at $72.91 a barrel at 10:26 am ET. On the other hand, US West Texas Intermediate crude futures also increased by 1 cent, as they settled at $67.26 per barrel. Moreover, the US crude inventories increased by 3.4 million barrels, as they settled at 432.575 million during the week at March 27th. The news was reported by the American Petroleum Institute.
The rise in inventory is because of the fact that the US production is soaring and it has jumped by a quarter during the last 24 months as they settled at 10.6 million bpd. On the other hand, the US has also overtaken the Saudi Arabia as it became the 2nd largest crude producer after Russia.
The Iranian oil exports also reached 2.6 million a barrel a day in April, as China and India, two of the largest economies in the world, were buying Iranian oil, at least half of it.
Moreover, oil prices will stay affected by Trump’s decision on May 12th to reinstate the US sanctions on Tehran. This would affect the oil exports to a large extent. However, some analysts fear that there are risks that the oil prices might drop in the coming run.