Crude oil futures continued to fall Wednesday morning after industry data showed a build in U.S. oil stockpiles.
Analysts say that U.S. production is surging again after a lull over the winter, as American companies look to take advantage of the recent rally in oil prices.
The American Petroleum Institute (API) reported a moderate build of 3.229 million barrels of United States crude oil inventories for the week ending January 23, according to the API data. It’s the second straigh weekly build.
Last week, the IEA projected that U.S. output would surpass Saudi Arabia, which is trimming production as part of its supply quota agreement with Russia and OPEC.
WTI light sweet oil was down 40 cents at $64.10 a barrel, down from a recent 4-year peak above $66.
The ADP jobs report, a key prelude to the government’s official monthly jobs report, was released moments ago.
Private sector payrolls jumped by 246,000 in December, beating expectation for modest jobs growth.
The Federal Reserve is widely expected to signal a March rate hike today.
The material has been provided by InstaForex Company – www.instaforex.com
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