Oil prices slide near 2% after surprise U.S. crude stock build
By Scott DiSavino NEW YORK (Reuters) - Oil prices slid near 2% on Thursday after U.S. data showed a surprise build in crude stockpiles last week related in part to ongoing reductions at refineries along the Gulf of Mexico following Hurricane Laura.
By Scott DiSavino
NEW YORK (Reuters) - Oil prices slid near 2% on Thursday after U.S. data showed a surprise build in crude stockpiles last week related in part to ongoing reductions at refineries along the Gulf of Mexico following Hurricane Laura.
The U.S. Energy Information Administration (EIA) said crude inventories rose 2.0 million barrels last week. [EIA/S]
That confirmed the direction of the 3 million-barrel increase reported by the American Petroleum Institute (API), but was a surprise compared with the 1.3 million-barrel decrease that analysts forecast in a Reuters poll.
"Today's crude data looked bearish ... with about the only supportive element being the fact that the 2 (million-barrel) build was less than that indicated by the API," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois, noting prices could fall further unless Gulf of Mexico refiners fully restart soon after shutting for Hurricane Laura.
Brent and WTI futures dropped to their lowest since mid June earlier this week and have remained in oversold territory over the past several days. Brent's Relative Strength Index (RSI) was under 30 for a fifth straight day for the first time since March.
In China, Bank ANZ said oil imports were likely to level off as independent refineries reach their maximum quotas.
In a further bearish sign, leading commodity traders were booking tankers to store crude oil and diesel.
The rising stockpiles come ahead of a meeting on Sept. 17 of the market monitoring panel of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+.
"Despite the recent slide in oil prices, we think that the OPEC+ leadership will continue to direct its efforts towards securing better compliance rather than pushing for deeper cuts at this stage," RBC analysts said.
(Additional reporting by Shadia Nasralla in London, Shu Zhang in Singapore and Sonali Paul in Melbourne; Editing by Marguerita Choy, Emelia Sithole-Matarise and David Gregorio)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.