Oil Extends Its Fall to Third Day on Rising Inventories
Crude oil prices fell to the levels not seen since early August today as the bulls met an overwhelming defeat by the US Energy Information Administration.
Both Brent and Light Sweet grades demonstrated the fastest daily drop in years. Today, the US crude oil inventories report demonstrated a growth of more than 8.5 million barrels during the last week. The growth exceeded traders’ expectations by 750 percent. The surprising report coincided with ongoing market rumors suggesting an increase of oil production in Saudi Arabia.
Despite the QE3 and other
Analysts believe that the oil is falling out of favor with major investors and that Brent will have to reach $100 before this bearish wave is over. Earlier, Group of Seven was close to putting their strategic fuel stockpiles to the market in order to curb prices. That is a hardly needed measure as of now.
Brent grade is currently down more than 4 percent and is trading at $107.97 per barrel as of 18:25 GMT. Light Sweet grade is down from $96.13 to $92.03 per barrel.
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