Oil rout returns as crude reserves hit record high

By FXStreet Oil benchmarks on both sides of Atlantic saw temporary relief following the weekly EIA report, although resumed that slide in Asia as supply overhang continue to dampen investors sentiment.

OPEC/Non OPEC meeting unlikely

Currently both crude benchmarks are accelerating to the downside, with WTI dropping -1.68% to 26.98 and the Brent oil down -1% to 30.55. Oil prices fell back in the red this session as markets digest the latest inventory report from the EIA, which showed an unexpected drop in the crude reserves last week.

However, the report also highlighted that oil storage levels remain at almost record=high levels just shy of 65 million barrels.

US crude oil inventories unexpectedly contracted by 754,000 barrels in the period ended February 5, following the 7.792 million barrel surge seen previously.

Moreover, fading expectations of any meeting between OPEC and Non-OPEC producers to bolster prices also seems to be weighing on the oil markets.

On Wednesday, oil prices saw a relief rally after Iran’s Oil Minister Bijan Zangeneh said, “We support any form of dialogue and cooperation with OPEC member states including Saudi Arabia.”

Looking ahead, markets will continue to closely track the developments surrounding oil markets ahead of Friday’s US rigs count data.
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Source:: FX Street