(MENAFN- ProactiveInvestors)
U.S. crude futures pulled back to US$45 after the Department of Energy revealed America’s oil surplus had reached its highest level since records began in 1982.
The DoE crude inventory report showed an 8.8mln barrel build in the stockpile last week which is more than double analyst estimates.
It comes after weekly API figures showed a 12.7mln barrel increase in inventories last week versus estimates of a 4mln barrel rise.
The statistics provide another reminder as if it were needed that the market is well supplied with oil.
In London trading Brent crude was down 0.7% on Wednesday at US$49.25 while West Texas Intermediary futures fell 2.4% at US$45.15.
Elsewhere a CNBC survey of Wall Street folk came to a consensus that the ‘bottom’ for the oil price was US$40.
As it happens that’s the same level that Goldman Sachs has predicted crude will hit at some point in the first half of the year.
Corporate earnings season is beginning to reveal oil price casualties.
Hess Corp revealed fourth quarter profits fell short of market expectations posting a US$8mln versus a US$1.9bn profit in the same period of last year.
Naturally the US oil producer blamed the collapse in oil prices for the result.
Previously this month Hess told investors it was slashing its capital budget for 2015 by 16% to US$4.7bn.
Elswhere BP is still prepared to move on new projects in the Gulf of Mexico even if sentiment continues to languish along with the price of crude and it continues to suffer the ongoing legal hangover from the 2010 oil spill.
The British oil company has today confirmed that alongside Chevron and ConocoPhillips it will launch a project to unlock the Tiber and Gila deep-water discoveries.
New arrangements see BP sell half of its stake in the project to Chevron.
Proactive Investors Australia is the market leader in producing news articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia UK North America and Hong Kong / China.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.