forex advisor developer

Oil Retreats After U.S. Stock Build

Oil rates decline on Wednesday after data indicated an unexpected increase in U.S. stocks, but expectations for stronger demand next year are holding back a sharper fall.

Recall, both benchmarks gained more than 1 percent during the previous settlement, as the U.S.-China trade deal “first phase” confirmed by both sides last week reduced pressure on the oil market.

Photo: Flickr

U.S. oil inventories unexpectedly grew last week, according to the American Petroleum Institute (API) report, released on Tuesday.

According to the API, oil inventories added 4.7 million barrels to touch 452 million for the week ending on December 13, while analysts predicted a 1.3 million barrels drop.

Traders are now waiting for official data to be released by the U.S. Energy Information Administration (EIA) later on the day.

OPEC and its allies agreement to deepen production cuts in the first quarter of 2020 also continues to support markets.

Brent futures with delivery in February lost 0.41 percent, to $65,84 per barrel, while WTI light oil with delivery at the same month tumbled by 0.66 percent, to  $60,45 per barrel at 8.24 GMT.