Oil plunged to the lowest level in more than six years in New York as a government report showed that U.S. crude stockpiles unexpectedly increased.
West Texas Intermediate slipped more than 3.4 per cent after the Energy Information Administration said crude supplies rose 2.62 million barrels last week. An 820,000 barrel stockpile decline was projected by analysts surveyed by Bloomberg. Crude imports surged to the highest level since April as refineries reduced operating rates.
NEW YORK — Oil fell as much as 5 per cent on Tuesday after No. 2 consumer China devalued its currency, raising questions about its demand for crude, while a new estimate showed non-OPEC producers more resilient than expected in keeping output up despite low prices.
U.S. crude hit contract lows, trading less than $1 per barrel above its bottom for 2015. Brent, the global benchmark, pared most gains from a Monday rally, heading for its largest decline in a week.
World oil prices slipped on Wednesday, but held close to 87 dollars as traders geared up for the weekly energy inventories report in the United States, analysts said.New York's main contract, light sweet crude for delivery in May, dropped 34 cents to 86.50 dollars a barrel.London's Brent North Sea crude for May fell 17 cents to 85.98 dollars per barrel."The oil price is holding up well and has been defending its very high price level," said Commerzbank analyst Carsten Fritsch in a note to clients.