Crude Stockpiles Drop in the U. S
On Wednesday, oil prices dropped as crude supplies in the United States slipped to lower than expected levels.
In the week ending June 17, U. S. crude inventories dropped by 900,000 barrels according to data from the Energy Information Administration.
In the past months, oil prices have moved up as supplies were expected to decline due to production outage in some of the major oil suppliers. However, in the U. S some of the analysts opine that the rally could come to an abrupt end when the busy summer driving season comes towards its end, because the global crude market still continues to face an oil glut.
According to analysts surveyed by The Wall Street Journal they expected the U. S. crude inventories to drop by 1.6 million barrels.
An industry group, the American Petroleum Institute said on Tuesday that its data for that week revealed U. S. crude stockpiles slipping by 5.2 million barrels.
Gene McGillian, a Tradition Energy analyst said, "the disappointment on the lack of a sizable draw in crude stocks has taken some wind out of the market's sails.'
On the New York Mercantile Exchange U. S, crude oil for August delivery settled 72 cents down or by 1.4 percent $49.13 per barrel. Brent which is another global benchmark dropped 74 cents to $49.88 per barrel.