Crude oil prices on Wednesday went down as it weighed by the release of the downbeat U.S. supply data.
The April contract of the U.S. West Texas Intermediate crude fell 65 cents or 0.94 percent at $62.01 a barrel.
Meanwhile, the May delivery of Brent oil on the ICE Futures Exchange in London dropped 63 cents or 0.96 percent to $65.15 a barrel.
According to the American Petroleum Institute, the crude oil inventories rose by 5.66 million barrels last week. Which surpass the expectations of an increase of 2.70 million barrels.
Market participants, on the other hand, are looking forward to the official data by the U.S. Energy Information Administration.
Oil prices had strengthened after the International Energy Agency stated that the global oil demand was expected to grow in five years, while the output from producers in OPEC would increase at a slower pace.
Meanwhile, OPEC and non-OPEC members agreed in December last year to extend oil output cuts until the end of 2018.
The agreement to cut oil output by 1.8 million bpd was approved last winter by OPEC, Russia, and other nine global producers. The deal was due to end in March 2018.
However, the IEA has revised the U.S. oil output growth. IEA stated that the country would be producing a total of 17 million bpd by the year 2023.
The crude oil production in the U.S. has already surpassed Saudi Arabia to 10.28 million bpd.
The increasing U.S. output has weighed on oil prices in the past few months amid concerns that it could dampen global efforts to get rid the market of extra supplies.
Meanwhile, the sentiment faded after President Trump said that he would push through his tariffs on steel and aluminum imports. Trump’s tariffs have sparked fears over a possible trade war.
The markets, on the other hand, were jittery after Gary Cohn, Trump’s economic adviser, announced his resignation on Tuesday. The decision was made following a disagreement between Cohn and Trump over the import tariffs.
In another place, gasoline futures fell 0.67 percent to $1.928 a gallon, while natural gas futures increased 0.25 percent to $2.756 per million British thermal units.
Gold Prices Stands Firm
Gold prices on Wednesday held firm close to one-and-a-half week highs. Meanwhile, sustained concerns about a possible global trade war continued to weigh heavily on the greenback.
However, Comex gold futures were little changed at $1,334.7 a troy ounce, just off Tuesday’s one-and-a-half week high of $1,342.00.
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