Oil futures drop after US weekly inventory data

Weekly US oil inventories jumped last week according to the latest US government data.

Crude stockpiles Stateside, excluding those in the strategic petroleum reserve, increased by 4.2m barrels during the week ending on 6 November, according to the Energy Information Administration, the US Department of Energy's statistical arm.

Analysts’ forecasts were in a range of between 1.3m and 1.5m.

Imports of oil rose by 434,000 barrels per day on average from the previous week.

Motor gasoline stocks on the other hand decreased by 2.1m barrels last week and those of distillate fuel by another 0.4m barrels.

On Wednesday, the American Petroleum Institute reported a build of 6.3m barrels, which easily outstripped forecasts calling for an increase of 1.1m barrels.

News that Iraq had loaded 10 tankers which were headed towards the US added to the selling pressure on Wednesday, especially coming as it did alongside upwards revisions to the DoE’s forecasts for US oil supplies in what was left of 2015.

As of 16:27 front month Brent crude futures were moving 3.129% lower to $44.43 per barrel in ICE trading.

Prompt month West Texas crude futures were down by 2.52% to $41.85 per barrel on the NYMEX.