Brent price falls towards $53 as U.S. crude stocks riseMarch 18, 2015 - 11:56 AMT PanARMENIAN.Net - Brent crude fell towards $53 a barrel on Wednesday, March 18, as U.S. crude stocks were forecast to have surged for the tenth straight week to a new record high, fuelling supply concerns of a global oil glut, although a weaker dollar kept a floor under prices, Reuters reports. Brent for May delivery LCOc1 fell 50 cents to $53.01 a barrel by 0644 GMT (0244 ET) after ending the previous session 7 cents up at $53.51. U.S. crude for April delivery CLC1 fell 92 cents to $42.54 a barrel, falling more than $1 a barrel in early Asian trade on Wednesday after crude inventories rose by 10.5 million barrels to 450 million in the week to March 13, data from industry group the American Petroleum Institute showed on Tuesday. Analysts had expected a 3.8 million barrel increase. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 3 million barrels, API said, according to Reuters. Official inventory data will be issued later on Wednesday by the U.S. Energy Information Administration (EIA). "Whether the API data is right or wrong it is still about market expectations or missed expectations," said Ben LeBrun, market analyst at Sydney's OptionsXpress. “The market is now watching for the EIA data to confirm the build in crude stocks,” he said. "If it’s better than expectations they'll be a short-term bounce in oil prices." The expiry of the Brent contract on Monday and the West Texas Intermediate forward contract on March 20 "is adding a bit of fuel, adding to volatility in the market", LeBrun said. "I expect some technical support to kick in before oil retests (January's) record lows," he said. Traders are also waiting for the U.S. Federal Reserve's policy making committee to outline its monetary policy objectives later on Wednesday which are expected to give a clearer intention on interest rates. "If U.S. interest rate hikes would be pushed back, this would likely cause the dollar to weaken, however, only in the short run," said Singapore's Phillip Futures in a research note on Wednesday. A weaker dollar should support oil prices because it makes commodities denominated in the dollar cheaper for holders of other currencies and expands their purchases of commodities and other assets. Rising output from Libya and plans by Iran to boost oil production once Western sanctions are lifted have heightened concerns of global oversupply concerns or oil although Tehran's moves to flood the market with oil have been played down by diplomats. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Turkey extends military presence in Azerbaijan The Turkish parliament has adopted a bill submitted by Recep Tayyip Erdogan to extend the mandate of Turkish troops. Russia to begin assessing migrant workers' speaking skills Rosobrnadzor is planning to change the Russian language exam for migrant workers and include an assessment of speaking skills Armenian, Saudi Foreign Minister meet in Riyadh The two commended the positive dynamics of the development of political dialogue between Armenia and Saudi Arabia Pashinyan: Azerbaijan’s proximity shouldn’t worry border residents At the same time, he said that he “does not guarantee [the security of villagers] one hundred percent”. |