Crude prices extended losses, falling for a third day, the longest losing streak in two month following the release of the latest API stockpiles report which revealed demand growth concerns in the world’s largest oil consuming country.
The North American WTI crude for April delivery dropped 0.83% to $99.19 per barrel on the New York Mercantile Exchange at the time of writing. While Brent crude for April settlement slid 0.37% lower at $108.16 per barrel on the ICE Futures Europe exchange at the same time.
The European benchmark crude was at a premium of $8.88 to WTI.
Crude – Ukraine
The ongoing tension between Russia and Ukraine over the Crimean region continues as the Ukrainian government appealed to the Western nations for help on Tuesday to help fight against Russia’s aggression in Crimea, which is still preparing for a referendum on joining Russia on March 16.
US Crude Supplies
On Wednesday, the American Petroleum Institute (API) released reports which revealed crude stockpiles at Cushing, the delivery point for WTI contracts, dropped by 1.31 million barrels in the week ending March 7.
According to the API report, crude inventories added 2.6 million barrels to 367 million, in the week ending March 7, compared to analysts forecast of an increase of 2.2 million barrels.
Distillate inventories, including heating oil and diesel, declined by 839,000 barrels, the industry group in Washington confirmed.
A separate report from the Energy Information Administration (EIA) is expected to be released later in the day.
According to the monthly Short-Term Energy Outlook released on Tuesday, the North American West Texas Intermediate could possibly average $95.33 per barrel this year.
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