Prices of oil in the United States continues to decline due to rise in inventory build

Oil plunges to $50

Thursday, right after the United States government showed an unexpected boost in the United States crude inventories, the prices of U.S. oil experienced extended declines. According to the data, the NYMEX crude for December delivery: CLc1 settled at $52.16 a barrel by 0107 GMT which was down by 2 cents from their last close.

In accordance to this, the EIA or the United States Energy Information Administration showed a data that indicated the rise in the country’s crude inventories, which have risen by 856,000 last week. This data took analyst by surprise as they are expecting a decrease of 2.6 million barrels. In addition, United States gasoline stocks fell by 5.5 million barrels, which contradicts an expected drop of 17,000 barrels, boosting the U.S. gasoline futures.

On the other hand, London Brent crude for December delivery settled at $58.43, which was down by 1 cent from their last close, wherein it settled 11 cents higher due to claims from Khalid al-Falih, Saudi Arabia’s energy minister who announced their country’s determination to end the three-year output oversupply.

The international benchmark: Brent crude futures capped a high of $58.74 on Wednesday, touching towards a twenty-six month high experienced in late September.

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