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U.S. oil falls to fresh 8-month low following bearish storage data

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Investing.com -

Investing.com - West Texas Intermediate oil futures extended losses to hit a fresh eight-month low on Wednesday, after data showed that oil supplies in the U.S. fell less than expected, while gasoline stockpiles rose unexpectedly.

On the New York Mercantile Exchange, crude oil for delivery in October tumbled 1.24%, or $1.15, to trade at $91.60 a barrel during U.S. morning hours.

U.S. oil prices hit a session low of $91.49 immediately following the data, a level not seen since January 14. Prices were at $92.08 a barrel prior to the storage report.

Futures were likely to find support at $91.24 a barrel, the low from January 9 and resistance at $93.94 a barrel, the high from September 9.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 1.0 million barrels in the week ended September 5, compared to expectations for a decline of 1.2 million barrels.

Total U.S. crude oil inventories stood at 358.6 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 2.4 million barrels, compared to forecasts for a decline of 0.2 million barrels, while distillate stockpiles rose by 4.1 million barrels.

The unexpected increase in gasoline stocks during the peak summer driving season in the U.S. was seen as bearish for oil prices, amid speculation of slowing demand.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery slumped 1.03%, or $1.02, to trade at $98.14 a barrel, the lowest level since April 18, 2013.

London-traded Brent prices have been on a downward trend in recent weeks as ample global supplies and receding geopolitical concerns in Ukraine and the Middle East drove prices lower.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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