Oil prices fall after new build in U.S. crude stocks

Oil prices fall after new build in U.S. crude stocks

Oil prices fell on Wednesday after a new build in
U.S. crude stock levels put a global glut back in
focus.
U.S. crude futures were down $1.15 at $51.90 a
barrel.
Brent was $1.03 lower at $56.88 a barrel after
gaining almost 6 per cent on Tuesday and off a near
six-year low of $45.19 reached in mid-January.
The drop cut short a rally that pushed up prices by
about 19 percent over the past four sessions.
But a report from the industry group, American
Petroleum Institute, showed that the drop was due
to the U.S. crude stocks which rose more than 6
million barrels last week.
The fall in prices “makes perfect sense after the
marked increase since Friday.
“A degree of reversal should be expected given stock
builds globally,” said Gareth Lewis-Davies, senior oil
strategist at BNP Paribas.
The U.S. government’s Energy Information
Administration (EIA) is expected to release its data
on stocks late on Wednesday.