Oil prices fell on Wednesday as assumptions of a surge in U.S. inventories pressured the market, countering the bullish momentum that stemmed from the reported output cuts of OPEC and other producer countries.
Brent crude oil futures lost 15 cents or 0.3% and traded at $55.29 per barrel. U.S. WTI crude futures were down 0.4% or 22 cents at $52.96 per barrel.
Fuel inventory data released by API on a weekly basis showed U.S. crude, gasoline and diesel product stocks all increased in the latest week. The market now shifts its focus on official data from the EIA to be released later today. Analysts project a build in U.S. crude inventory of around 2.8 million barrel last week.
Goldman Sachs analyst said that the Republican’s call for shift to border-adjusted business tax could drive U.S. crude prices higher than the Brent, prompting large-scale production in America.
The stronger dollar also affected sentiment,as it made greenback-priced crude expensive for buyers overseas using other currencies.
The material has been provided by InstaForex Company – www.instaforex.com