Skip to main content
//empty //empty

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.

Brent futures fell 73 cents, or 1.8%, to settle at $40.06 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 75 cents, or 2.0%, to settle at $37.30.

The U.S. Energy Information Administration (EIA) said crude inventories rose 2.0 million barrels last week.

Story continues below advertisement

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.

Story continues below advertisement

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies