WTI crude (CLJ15.NYM) prices are taking another leg down, hovering at the $42 a barrel level after the U.S. Energy Information Administration reported that "U.S. crude oil inventories are at the highest level for this time of year in at least the last 80 years."
Related: EIA data for the week ending March 15, 2015
EIA reported commercial crude inventories increased by 9.6 million barrels from the previous week. Now at 458.5 million barrels. This follows a huge inventory build of 10.5 million barrels, reported late Tuesday by the American Petroleum Institute. Analysts were expecting just 3.5 million.
Jeff Mower, a director, Americas Oil News, told Yahoo
Finance rising supplies are not a surprise because production remains
high and refiners are in a seasonal slowdown. "A lot of refiners are
down for maintenance and the crude has no place to go." The stronger
U.S. dollar has also been a drag on oil prices, however Mower says that
is almost irrelevant. "You need to look at the bigger picture," which is ballooning
supplies. "There is this connection but it's not really a one-to-one
connection considering what's going on fundamentally."
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