Oil falls 34 cents, settling at $56.22, after US crude stockpiles surge
Meanwhile, the nation’s gasoline inventories fell by 4.2 million barrels and stocks of distillate fuel including diesel were down 2.4 million barrels.
“A big rebound in U.S. crude oil imports, combined with a drop in exports led to the large increase in domestic inventories,” said David Thompson, executive vice president at Powerhouse, an energy-specialized commodities broker in Washington. “Demand for refined products remains decent.”
Crude futures also tracked a slump in U.S. equities, which sputtered without positive developments in trade talks between Washington and Beijing.
“I think there’s a little less optimism in relation to the U.S.-China trade negotiations,” said Tony Headrick, energy market analyst at commodity brokerage CHS Hedging LLC. “It has sort of gone quiet, so I think equities are continuing to provide an influence here.”
EIA will also issued its latest estimate on weekly U.S. oil production on Wednesday. The preliminary figures showed American output at 12.1 million barrels per day, matching last week’s record.