Prices for the North American West Texas Intermediate (WTI) extended losses for a third day in a row as US government data revealed distillate and crude stockpiles climbed, while the tension in the Ukraine eased.
Crude prices were dragged to its lowest level in two weeks, clearing previous gains seen on Monday as Russian troops came into Crimea over the weekend.
West Texas Intermediate (WTI) for April delivery dropped 0.39% to $101.03 a barrel on the New York Mercantile Exchange on Thursday, while the Brent crude for April settlements added 20 cents at $107.96 a barrel on the London-based ICE Futures Europe exchange. The European benchmark was at a premium of $6.84 to WTI.
According to reports from the EIA, the Energy Department’s statistical arm, distillate stockpiles added 1.41 million barrels in the week ending Feb 28. Analysts forecasted to see a drop by 1 million barrels.
Meanwhile, stockpiles in Cushing, the delivery point for New York-traded contracts, dropped by 2.66 million barrels to 32.1 million, according to the EIA.
“The drop in the price has been magnified amid growing U.S. inventories and decreasing geopolitical risks,” said Hong Sung Ki, a commodities analyst at Samsung Futures Inc. in Seoul.
While in France, the International Energy Agency said its monitoring the oil and gas market constantly as the tension in Ukraine eases. The European Union will be gathering for an emergency meeting later in the day to discuss consequences for Russia after the country’s Foreign Minister Sergei Lavrov refused the US efforts to ease tensions in the Crimean peninsula.
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