By fxtimes.com
Highlights:
- WTI crude tumbles to fresh six-year low as investors brace for a new record buildup in US crude inventories.
- Brent crude also under pressure, declining 2.25% to $53.44 a barrel.
- Analysts forecast US crude inventories rose last week to above 452 million barrels, the highest level in at least 80 years.
US crude prices tumbled below $43 a barrel on Tuesday, a new six-year low, as investors braced for another record buildup in US crude inventories.
West Texas Intermediate (WTI) crude for April delivery consolidated at $43.14 a barrel in afternoon trade, down 1.6 percent on the day. That was the lowest level since March 2009.
WTI’s discount to Brent crude widened to around $10 a barrel, although the global benchmark was also under pressure. Brent futures tumbled 2.25 percent to $53.44 a barrel.
Concerns about record buildup in US crude supplies continued to weigh on the markets on Tuesday. Analysts are forecasting a tenth consecutive week of record buildup in US crude supplies. Stockpiles last week are forecast to have exceeded 452 million barrels, the highest level in at least 80 years.
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The US Energy Information Administration will release official stockpile data on Wednesday.
Further declines in crude prices have been forecast by industry groups and major banks. Crude prices had rebounded by around a third in January and February after a seven-month rout resulted in a record selloff of the commodity.
Overall, crude prices fell 9 percent last week, a sign the commodity has yet to find its bottom amid geopolitical uncertainties, record US shale production and a resurgent dollar.
By fxtimes.com
