Oil prices dive 5 percent as U.S. crude inventories balloon
Oil prices plunged 5 percent to their lowest levels this year on Wednesday as U.S. crude inventories surged much more than expected to a record high, stoking concerns a global glut could persist even as OPEC tries to prop up prices with output curbs.
Crude stockpiles in the world’s top energy consumer have been rising all year, and soared last week by 8.2 million barrels, more than quadruple the forecasts, data from the U.S. Energy Information Administration showed.
The big daily price slide could signal a steep downward move if speculators are beginning to unwind long positions in crude oil, which were close to a record, traders and analysts said.
Written by Devika Krishna Kumar for Reuters.com