Crude oil prices declined on Wednesday after the recent data showed a rise in crude stockpiles in the US, the world’s largest oil consumer.
West Texas Intermediate for December delivery dropped 0.24% lower to $93.46 a barrel on the New York’s Nymex at the time of writing, while the European benchmark Brent rose 0.03% at $110.93 a barrel at the same time.
Crude Oil – US Inventories
Crude Inventories in the US, the world’s largest oil consumer; rose by 6.92 million barrels for the week ended November 22, according to reports from the American Petroleum Institute. The report also showed that gasoline supplies added 201,000 barrels in the week.
The Energy Information Administration (EIA) is expected to release additional data, as it is forecasted to show a rise in oil supplies by 423,000 barrels in the week ending November 23.
Crude Oil – Iran Deal in Focus
Five permanent Security Council members, Britain, France, US, China, Russia and Germany concluded an agreement with Iran over the weekend to ease the extensive nuclear program in the country in return of an estimated $7 billion-worth of sanctions on Iran’s exports for the coming six months. As part of the six-month agreement, Iran will get access to $4.2 billion in foreign exchange, a Western diplomat confirmed to the press.
The Persian Gulf nation shipped 715,000 barrels a day in October, down from 1.26 million in September, the International Energy Agency confirmed in its monthly report.
The country holds the world’s fourth-largest oil reserves and second-largest natural gas reserves, according to data from the US Energy Information Administration (EIA).
Crude Oil – Libya
Civil servants and the private sector staffs in Libya went on strike on Tuesday, reacting to the conflict between the army and Islamists. The country’s oil output dropped from 1.45 million bpd recorded last year to 450,000 bpd in October.
US Data
Investors are expecting more US macroeconomic data later in the day for hints as to when the Federal Reserve may begin to scale-back on its monthly asset-purchasing program.
In the jobs sector, the jobless claims report for the week ending November 23 is forecasted to show a rise to 330,000, up from 323,000 in the previous week.
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