Oil prices dipped following a trough in global equities. Data from the American Petroleum Institute (API) was in focus as it showed U.S. crude inventories jumped more than expected last week.
Oil prices extended their 2% losses from the prior session as equities in China and Japan fall by more than 4% after US equities suffered their worst one-day drops in eight months overnight. The S&P 500 fell more than 3%, its biggest one-day decline since February.
In the meantime, the API has reported that US crude inventories soared by 9.7 M barrels last week, with analysts expected an increase of 2.6 M barrels. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 2.2 M barrels, the industry group added.
Today, market participants will have the opportunity to reach the most recent weekly EIA inventories report, when it is expected to show an increase of 2.3 M barrels. Due to the bigger-than-expected API report late Wednesday, traders now probably expect the EIA data to come in more than the original consensus estimate.
US WTI and UK Brent crude oil futures early in the session following the release of a bearish report from the American Petroleum Institute late Wednesday and ahead of today’s U.S. Energy Information Administration’s weekly inventories report.
New York-traded WTI crude futures trade at $72.10 a barrel. Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S. trades at $81.80 a barrel.