Oil prices slip by 5 percent after an unexpected increase in the U.S. crude inventories that was reported on Wednesday. That triggered a flurry of worried investors that the proposed cut by major oil producer from all around may not be enough to stop the global glut.
The report that was shown last Wednesday revealed that Crude stocks in the United Stated have grown by another 3.3 million barrels which adds another 513 million barrels of crude oil into the U.S. stockpiles, according to the U.S. Energy Information Administration (EIA).
Gasoline inventories have also unexpectedly risen, imports have increased while exports have dropped.
Gasoline stocks in the market by 3.3 million barrels, compared with analysts’ expectations in a Reuters poll for a 580,00 barrels gain.
The EIA also stated on Tuesday, that the U.S. Crude oil production hit a record of 10 million barrels per day next year, which was higher from its production now of 9.3 million barrels per day.
Brent Crude futures were trading at $48.27 per barrel which was down by $1.85 or 3.7 percent, while U.S. light crude prices was trading at $45.73 per barrel which was also down by 5.1 percent.
Both Brent and U.S. crude are about 10 percent below their open on May 25, when OPEC and the producers agreed to extend to output cuts to the first quarter of 2018.