Crude Slips on Inventory Surplus
U.S. crude prices remain under pressure. Crude slipped 4.0% last week and has declined a further 7.4% this week. On Wednesday, the Energy Information Administration (EIA) reported a surplus of 3.0 million barrels, above the estimate of 2.0 million. This reading marked a third successive surplus in crude stockpiles, which has put downward pressure on oil prices. Crude responded with losses of almost 3.0% on Wednesday and fell to 52.25, its lowest level since August 5. Crude has not posted a winning daily session since September 23. It was less than three weeks ago that an attack on a Saudi oil refinery triggered double-digit gains in crude prices. However, the spike in crude now seems like a distant memory, as crude has given up all of these gains and then some.