Nov 6, 2019

Energy | Oil | Oil Price Report: Oil prices slide on U.S. crude build, euro zone data

2-3 minutos - Source: CNBC

GP: Oil refinery at Corio silhouetted at sunset 190923
Oil refinery at Corio, Australia silhouetted at sunset.
Richard I’Anson | Lonely Planet Images | Getty Images

Oil prices fell on Wednesday after a larger-than-expected build in U.S. crude inventories and weak euro zone economic figures, reversing some of the gains of the previous three sessions.
Brent crude fell 21 cents, or 0.4%, to trade at $62.75 a barrel. West Texas Intermediate crude lost 44 cents, or 0.78%, to trade at $56.80.
U.S. crude oil inventories increased by 7.9 million barrels from the previous week, according to the U.S. Energy Information Administration. This was higher than the 1.5 million barrels that analysts had been expecting.
“Oil prices are slightly under pressure following API’s larger-than-expected crude build on Tuesday. Market participants will closely monitor if the build is confirmed by the EIA later today, considering that last week API had a crude draw and the EIA a crude build,” said Giovanni Staunovo, oil analyst for UBS.
The United States and China, the world’s two biggest oil consumers, are working to narrow their differences enough to sign a “phase one” trade deal as early as this month to resolve a trade war that has slowed global growth.
Data on Wednesday showed Germany’s services sector barely grew in October, while euro zone business activity expanded slightly faster than expected last month, but remained close to stagnation.
Adding to Middle East tensions, Iran started to inject uranium gas into centrifuges at an underground nuclear facility, further distancing itself from a 2015 nuclear deal between Tehran and world powers that curbed its atomic work.
Last year, U.S. President Donald Trump exited the deal and renewed sanctions on Tehran, slashing Iran’s economically vital crude oil sales by more than 80%.
“Alongside the continued rolling back of its nuclear commitments, the OPEC nation may be tempted to cause further supply disruptions in the Middle East in a bid to drive up prices,” PVM analyst Stephen Brennock said. “Accordingly, conditions are ripe for tensions in the region to escalate and for the geopolitical risk premium to strike back with a vengeance.”

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