Oil Surplus Rises as Price per Barrel Keeps Fluctuating
Published By : 04 Sep 2015 | Published By : QYRESEARCH
At the epicenter of market volatility today is the swinging oil price. Wednesday morning saw a major fall in oil prices, which was later brought back with turbulent efforts. The price fell when a report said revealed that there was currently a giant pool of reserves. Prices later covered up in the Asia trading on Wednesday night.
According to the U.S. Energy Information Administration, there is an increase in stockpiles by 4.7m, which is a huge production especially after last week’s drop of 5.5m. The rise was beyond what most analysts’ expected when they said the reserves would mostly remain flat.
The prices were thought to reflect the advent of maintenance season for oil refineries, which was what was expected to weigh on prices.
Brent began falling despite London equities trade maintaining US$50 per barrel. Brent lost 2% and dropped to US$48 per barrel. Oil prices increased to finally reach above US$50 after a market rally that was created due to a positive U.S. jobs data.
Early Thursday’s trading in London saw oil prices remaining stable around the critical threshold, after displaying a small drop of 0.2% for the day.
Oil prices, however, have still dropped to a historic low, with Brent stuck at US$50 and a US$46 price kept by the West Texas Intermediate’s U.S. Benchmark.
The core issue of the stockpiled oil is still bearing down on the oil industry and threatens to make prices fall. Analysts are saying that the prices oil is at today are unsustainable and that fact alone can be sufficient to raise the prices.