Oil traded below $55 a barrel as an increase in American crude inventories added to the bearish sentiment with another tweet from Donald Trump calling for even lower prices.
Futures fell as much as 0.6 percent in New York, after Wednesday’s 2.3 percent gain pared some of the losses from a rout earlier this week. America’s crude inventories expanded for a ninth straight week, the longest rising streak since March 2017, according to government data released Wednesday. Meanwhile, Trump thanked Saudi Arabia for lower oil prices in his tweet, but also said “let’s go lower!”
West Texas Intermediate for January delivery lost as much as 35 cents to $54.28 a barrel on the New York Mercantile Exchange, and was at $54.35 at 11:36 a.m. in Singapore. The contract rose $1.20 to $54.63 on Wednesday, after plunging 6.6 percent in the previous session. Total volume traded was 28 percent below the 100-day average.
Brent for January settlement dropped 35 cents, or 0.6 percent, to $63.13 a barrel on the London-based ICE Futures Europe exchange. The contract settled 1.5 percent higher at $63.48 on Wednesday. The global benchmark crude traded at a $8.79 premium to WTI for the same month, on course for the least premium since Sept. 21 on close.
Source : Bloomberg