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Oil Rates Slip On Back of U.S. Reserves Increase

Crude prices dropped  on Wednesday morning after fresh API data, which showed that U.S. inventories grew by 4.26 million barrels though it was expected a more moderate increase. The crude prices drop followed after three straight sessions of gains, buoyed by trade optimism over the fact Washington and Beijing are closer to sign the long-awaited agreement as well as market participants expectations for deeper cuts in crude output from OPEC and its allies.

oil prices dropPhoto: Flickr

Hopes for trade friction easing pushed the main benchmarks down with Brent January futures slipping by 0.75 percent, to $62.49 per barrel and U.S. WTI December future contracts achieving a 0.61 percent decrease, to touch $56.88 per barrel at 9.28 GMT.

U.S. oil stocks grew by 4.3 million barrels for the week, which ended on November, 1 to account 440.5 million barrels, as showed American Petroleum Institute (API) report, published the previous day. Recall analysts were forecasting a 1.5 million barrels growth.

The official EIA reading, as usual, is due to be published later on Wednesday.

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