After rising all the way up to 57 dollars per barrel, a new 18- month high, oil prices started retracing again. Despite numerous bullish predictions coming from the international expert community, whose optimism was mainly backed by the recent Vienna Accord implying oil production cuts by both OPEC and non-OPEC oil nations, oil prices are seeing a downtrend today. This is confirmed by the oil price chart, courtesy of Masterforex-V Academy.
It is reported that the current oil price drop has to do with the recent report published by the American Petroleum Institute (API). According to the report, American oil inventories have increased a lot over the reporting period.
America’s Oil Inventories Reverse Oil Prices
This morning, Brent oil futures for February delivery lost 1.2%, dropping all the way down to $55.05/b. At the same time, WTI oil futures for January delivery lost 1.26%, dropping all the way down to $52.31/b.
As we have just mentioned, the oil price drop we can see now was triggered by the recent report released by the American Petroleum Institute, which reads that the USA’s oil inventories are now much bigger than the used to be over the previous reporting period. To be more specific, over the past week that ended on December 9th, America’s crude oil inventories increased all the way up to 4.7 million barrels.
