U.S. crude oil prices fall as inventories hit record high | Reuters

SINGAPORE U.S. crude prices dipped in early Asian trading on Thursday as oil storage levels hit record highs, and Goldman Sachs said prices would remain low and volatile until the second half of the year.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading at $27.37 per barrel at 0022 GMT, down 8 cents from their previous close and more than 20 percent below a peak reached in late January following a brief rally.

Inventories at the Cushing, Oklahoma delivery point for U.S. crude futures rose to an all-time high just shy of 65 million barrels, data from the government's Energy Information Administration (EIA) showed on Wednesday.

The overhang in oil supplies, together with an economic slowdown in China, means that prices will remain low until the second half of the year, Goldman Sachs said in a note to clients.

"The risks of China growth concerns and oil price downside ... materialised faster than we anticipated," the bank said.

"We expect oil prices will continue to fluctuate between $20 per barrel (operational stress level) and $40 per barrel (financial stress level) with significant volatility and no price trend until 2H2016," it added.

Oil prices have fallen almost 75 percent since mid-2014 as producers pump 1-2 million barrels of crude every day in excess of demand, just as China's economy grows at its lowest rate in a generation.

(Editing by Richard Pullin)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Feb 11, 2016 07:15 AM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See