Oil slips after U.S. crude stocks build to record high
Oil prices ended slightly lower on Wednesday as record high U.S. crude supplies tempered expectations that the market will rebalance as evidence emerges that OPEC producers are complying with an agreement to cut production.
Crude stockpiles in the United States, the world’s top oil consumer, rose 1.5 million barrels last week, less than forecast, but touching a record at 520.2 million barrels after eight straight weekly builds.[EIA/S]
The consecutive increases have fueled worries that demand growth may not be sufficient to soak up the global oil glut despite a deal by major oil producers to cut output during the first half of the year.
U.S. West Texas Intermediate (WTI) futures for April delivery CLc1 settled at $53.83 a barrel, down 18 cents or 0.3 percent. May Brent crude futures LCOc1 dropped 15 cents, or 0.3 percent, to $56.36 a barrel.
Written by Jessica Resnick-Ault for Reuters.com