Investors on Wednesday reacted to bearish supply data from the previous session when the API reported that U.S. weekly crude inventories surged by 6.3 million barrels for the week ending on Nov. 6. A survey of analysts by Platts anticipated a build of only 500,000 on the week. Within the report, a spike in imports by 198,000 offset an increase in refinery crude runs of 193,000 barrels. Separately, crude inventories at the Cushing Oil Hub in Oklahoma rose by 2.5 barrels for the week. Cushing is the nation's main delivery point for NYMEX oil.
A more closely-watched government report from the U.S. Energy Information Administration (EIA) will be released on Thursday, one day later than usual due to the Veterans Day holiday. A week earlier, crude stockpiles increased by 2.84 million barrels to 482.8 million, remaining near levels not seen in at least 80 years.
The strong U.S. dollar is also keeping pressure on commodity prices.
Oil Prices - November 11
Oil Prices - November 11
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group