MTECHTIPS;-Oil prices extend fall after surprise inventory build

MTECHTIPS;-Oil prices extend fall after surprise inventory build MTECHTIPS-Oil prices fell for a fourth day on Wednesday, extending losses after a surge in U.S. inventories surprised investors, overshadowing an interest rate cut by the Federal Reserve. Brent crude futures LCOc1 were down 6 cents at $60.55 a barrel by 0033 GMT, having fallen by 1.6% on Wednesday. U.S. West Texas Intermediate (WTI) crude futures CLc1 were down by 16 cents, 0.3%, at $54.90 a barrel, after declining 0.9%. The Federal Reserve on Wednesday cut interest rates for a third time this year and signalled it plans no further cuts unless the economy takes a turn for the worse. a rate cut can often be bullish for oil prices because a stronger economy typically implies higher demand for crude, investors focused on soaring U.S. crude oil stockpiles amid higher imports and a release from national reserves. "Oversupply concerns are dampening the optimistic outlook to the economy that the Fed painted," said Edward Moya, senior market analyst at OANDA. Crude inventories USOILC=ECI rose 5.7 million barrels in the week to Oct. 25, the U.S. Energy Information Administration said on Wednesday, compared with analysts' expectations for a 494,000-barrel build. EIA/S On Tuesday, the American Petroleum Institute, an industry group, had reported a 708,000-barrel decline in inventories, raising hopes that official figures would also show a drop MTECHTIPS-Apply For 2 Days Free Trails Equity & Commodity Tips WWW.MTECHTIPS.COM 07489294118-119
Published on Oct 31 2019 3:07PM, by MTECHTIPS in Commodity tips| Share This

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