Oil Extends Losses After Big Rise In Stockpiles

My FX Forum

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Oil prices fell on Thursday to extend losses from the previous session after data showed an unexpected rise in U.S. inventories.

Global benchmark Brent crude for December delivery was down 80 cents or 1.0 percent at $79.25, after having ended below the $80-a-barrel threshold for the first time in nearly a month on Wednesday.

U.S. West Texas Intermediate crude futures for November delivery were down 1.02 percent at $69.04 a barrel, after tumbling 3 percent in the previous session to settle below $70 for the first time in a month.

U.S. crude oil inventories rose by 6.5 million barrels last week, the U.S. Energy Information Administration (EIA) said in its weekly report on Wednesday.

That marked the fourth straight weekly build and was almost triple what analysts had forecast. In the previous week ending Oct. 5 also, there was a large build of 6.0 million barrels.

Gasoline stocks fell by 2.0 million barrels last week, compared to expectations for a draw of 1.07 million barrels, while distillate inventories dropped by 0.8 million barrels, compared to forecasts for a decrease of 1.3 million.

Analysts expect global oil demand to grow at a slower pace this year and next in the wake of ongoing trade dispute between the U.S. and China.