Oil price news: Oil declines as industry report points to swelling U.S. stockpiles
BNN Bloomberg
Oil extended losses after an industry report pointed to rising U.S. crude inventories, adding to bearish signs for the market.
Brent fell for a third session toward US$82 a barrel and West Texas Intermediate eased near $78. The American Petroleum Institute reported crude stockpiles rose by 2.5 million barrels last week, according to people familiar. If confirmed by official data Wednesday, it would be the first gain this month.
Oil futures are still higher this year due to OPEC+ supply cuts, but some market measures are starting to point to weakness. The prompt spread for Brent is nearing a bearish contango structure, which would signal ample supply.
“Fundamentals are weak,” said Gao Jian, an analyst at Shandong-based Qisheng Futures Co., adding that traders will be focused on the upcoming OPEC+ meeting, which “will set the course” for the market in the second half.
