Oil’s Advance Halts as Market Awaits U.S Stock Pile Data and Brexit Poll
The oil's advance came to a halt close to $49 per barrel as markets are waiting for U. K's referendum on 'Brexit' and the weekly data on U. S. stockpile.
In New York, Oil futures dropped as much as 0.6 percent shedding its two day gain of 6.8 percent. In Asia the stocks reversed earlier losses with the Bloomberg Dollar Spot Index remaining steady following a four days slide.
In the past week, the U. S. inventories most likely dropped by 1.5 million barrels. A Bloomberg survey which was released prior to the data from the government on Wednesday showed that, the oil inventories still maintaining greater than 100 million barrels more than the five-year average.
The global surplus has been trimmed by disruptions of supply from Nigeria to Canada and following along with decline in U. S output, that the oil futures have advanced 85 percent or more compared to the lowest level in twelve years. A markets analyst with IG Ltd in Melbourne, Angus Nicholson, said "Oil has been dominated by general market sentiment over the past week and less by specific oil factors."
Data from the Energy Information Administration revealed that the U. S. crude inventories slipped for the fourth week to 531.5 million barrels till June 10. Till the weekend, the drilling activity scaled for a third week as companies added nine rigs, increasing the total to 337.