US Oil Inventories Rise Less Than Forecast
News Article Sponsored by Texas Oil & Gas Association
Inventories remain at “historically high levels for this time of year,” the Energy Department noted.
Inventories in Cushing, Oklahoma, a key delivery hub, fell by 272,000 barrels, compared to estimates of a rise of 310,000 barrels.
Oil prices have stabilized since mid-February as hopes have risen that major producers may finally cut production in light of the supply glut in the global market.
However, many analysts have warned that volatility may rise in coming weeks. Among the reasons cited is that oil has been one of the top-performing assets this quarter, meaning traders may sell to lock-in profits, especially since fundamentals have not materially changed.
West Texas Intermediate, the US benchmark, was recently up 3.7 per cent, adding slightly to its gain ahead of the report.
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