Oil Falls: As US crude stocks hit record for seventh regular week

Hong Kong: Due to US’s rising crude stockpiles which kept supplies at the highest level from over the eight decades, the Oil future fell in Asian trade today, as per officials. Despite the seasonal refinery utilisation hitting an Eleven year high, that seemed increasing and it is while a rise in the dollar index, which is putting further pressure on oil prices.

It is notable that the Brent crude futures cut down Twenty- two cents to 39.04 dollar a barrel as of 0136 GMT. It is also experienced that the same is ended up twenty- two cents in the previous session, after touching 40.61 dollar’s session peak.

Moreover, the contract of front- month for United States crude futures fell down by 26 cents to 38.06 dollars a barrel, after seemed setting up Four cents in the earlier session, after a gain of three per cent earlier in session.

Also, as found pointed by the Oil Risk Manager at Japanese Mitsubishi Corporation- Tony Nunan, the price will “zig- zag” for the rest of the year.

In the week to 25th March, the United States crude stocks found rising by 2.3 million barrels to 534.8 million barrels, as has been shown in the data from the Energy Information Administration of United States.

However, such increase is shown as not meeting the expectations of the analysts and it was less than as expected 3.3 million barrel build after crude import fallen 636,000 barrels per day to 7.4 million bpd.

As per Oil Risk Manager- Nunan until May or June, the Commercial Inventories will continue to build and the bearish sentiment (in connection with prices) will “continue until we actually see inventories draw down”.

It was earlier the said rose prices of Oil, by about Fifty per cent from mid- February, were started to track lower in past week. As per Nunan, the Oil Prices will tread down again to around (35 dollar) a barrel. However, such lower prices are not “sustainable in the long- run”, as said by him.

Notably, as per the head of the International Energy Agency- Fatih Birol, Iran is likely to add ½ a million of supply of Oil a day, within a year from existing oilfields after sanctions were lifted in January.

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