Signs of easing supply concerns drove oil prices lower Tuesday, with U.S. stockpile data on tap. European benchmark Brent crude futures fell 17 cents to $83.16 a barrel while the U.S. standard West Texas Intermediate (WTI) crude futures eased 10 cents to $78.38. Prices fell further following data from the American Petroleum Institute showed a jump in U.S. crude and fuel inventories the previous week, defying analysts' expectations alongside forecasts of a decrease in demand.
StoneX analyst Alex Hodes was quoted in a recent Reuters article, telling his clients, "Global inventories remain in a building phase and has accelerated recently.”
According to StoneX analysis, global inventory data puts crude oil and petroleum barrel supplies at 1.1 million barrels per day above forecasts. Official data from the U.S. Energy Information Administration (EIA) was due at 10:30 a.m. ET on Wednesday. The previous day, the EIA revised upward its forecasts for this year's world oil and liquid fuels output and lowered demand expectations, indicating a well-stocked market.
Last week, Brent and WTI suffered their largest weekly losses in three months as weak U.S. jobs numbers failed to curb hopes for near term interest rate cuts.
Oil prices previously received a boost on Tuesday after a U.S. government solicitation to purchase more than 3 million barrels of oil for the Strategic Petroleum Reserve (SPR). Oil traders seem to be increasingly looking past escalating tensions in the Middle East where mediators worked on securing a ceasefire agreement.
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