Oil slumps 3% after US inventory surge
Oil futures slumped 3% in American trade away from four-year highs, after earlier data showed US inventories surged past forecasts last week.
As of 05:30 GMT, US crude futures due in November fell 2.64% to $71.24 a barrel, while Brent December futures shed 2.76% to $80.80 a barrel, as the dollar index declined 0.39% to 95.14.
US Inventory Build
The Energy Information Administration released its report on US crude stocks, showing a build of 6 million barrels in the week ending October 5, adding to the 8 million build in the previous reading, with total stocks increasing to 410 million barrels, settling at five-year averages.
Total gasoline stocks rose 1 million barrels, making them 7% above averages, while distillate stocks fell 2.7 million barrels, marking them 4% below averages.
Otherwise, the Energy Information Administration cut its forecasts for global oil demand growth by 60 thousand bpd to 1.52 million bpd in 2018, while expecting growth to speed up to 20 thousand bpd in 2019.
Oil prices are up 20% so far this year as OPEC and Russia carry on their agreement to cut global output to easy a previous supply glut, while the US withdrew from the Iran deal and sanctioned their oil exports.
US Oil Rig Count
Baker Hughes, a US oil services company, reported a drop of two rigs in the oil rig count to a total of 863 rigs, the third weekly increase in a row. .
US output has recently risen to the second highest in the globe, taking the place of Saudi Arabia while Russia continues at the top with 11.21 million bpd.
US Inflation, Labor Data
Other US data showed consumer prices rose 0.1%, slowing down from 0.2%, while core prices rose 0.1%, also missing estimates of 0.2%.
On a yearly basis, consumer prices rose 2.3%, slowing down from 2.7%, while core prices rose 2.2%, below expectations of 2.3%.
Unemployment claims rose 7 thousand in the week ending October 6 to 214 thousand, while continuing claims rose 4K in the week ending September 29 to 1.660 million.
Sterling climbs off month lows versus dollar
Sterling tilted higher in American trade away from September 10 lows versus the greenback, after multiples speeches by Bank of England Governor Mark Carney, and following earlier data from the US today.
As of 04:59 GMT, GBP/USD rose barely to 1.3199, with a session-low at 1.3182, and the highest since September 21 at 1.3247.
US Inflation, Labor Data
Earlier US data showed consumer prices rose 0.1%, slowing down from 0.2%, while core prices rose 0.1%, also missing estimates of 0.2%.
On a yearly basis, consumer prices rose 2.3%, slowing down from 2.7%, while core prices rose 2.2%, below expectations of 2.3%.
Unemployment claims rose 7 thousand in the week ending October 6 to 214 thousand, while continuing claims rose 4K in the week ending September 29 to 1.660 million.
Euro rebounds from seven-week lows against dollar
Euro rose in American trade away from August 20 lows against the dollar, following earlier data from both the euro zone and the US today.
As of 04:29 GMT, EUR/USD rose 0.50% to 1.1578, with an intraday low at 1.1520, and the highest since October 1 at 1.1535.
Earlier French data showed consumer prices fell 0.2%, same as the preliminary reading and compared to a 0.5% increase in August, while the European Central Bank released the minutes of its September 12-13 meeting.
At that meeting, the ECB voted to maintain the current minimum bid rate at zero, and the deposit rate at minus 0.40%.
The bank also kept its quantitative easing program at 30 billion euros a month, before cutting it in half starting next month and the one after.
US Inflation, Labor Data
Earlier US data showed consumer prices rose 0.1%, slowing down from 0.2%, while core prices rose 0.1%, also missing estimates of 0.2%.
On a yearly basis, consumer prices rose 2.3%, slowing down from 2.7%, while core prices rose 2.2%, below expectations of 2.3%.
Unemployment claims rose 7 thousand in the week ending October 6 to 214 thousand, while continuing claims rose 4K in the week ending September 29 to 1.660 million.
EIA: US crude inventory build sharply above estimates
The Energy Information Administration released its report on US crude stocks, showing a build of 6 million barrels in the week ending October 5, adding to the 8 million build in the previous reading, with total stocks increasing to 410 million barrels, settling at five-year averages.
Total gasoline stocks rose 1 million barrels, making them 7% above averages, while distillate stocks fell 2.7 million barrels, marking them 4% below averages.