: :inin Kyiv (EET)

Oil prices fall as concerns rise over rally petering out

Oil prices fell on Tuesday as concerns mount that a rally since January is fizzling out, while analysts forecast another rise to record levels for U.S. crude stockpiles, Reuters reported.
U.S. oil CLc1 was down 30 cents at $39.09 a barrel at 0553 GMT, after finishing down 7 cents at $39.39, the previous session, according to Reuters.
Brent LCOc1 fell 35 cents to $39.92. On Monday it settled down 17 cents at $40.27 a barrel.
U.S. commercial crude oil stockpiles were expected to have reached record highs for a seventh straight week, while refined product inventories likely fell, a preliminary Reuters survey showed late on Monday.
The poll of eight analysts, taken ahead of weekly inventory reports from industry group the American Petroleum Institute (API) and the U.S. Department of Energy`s Energy Information Administration (EIA), estimated, on average, that crude stocks rose 3.2 million barrels in the week ended March 25.
Both oil benchmarks are up about 50% from 12-year lows hit in mid-February but the oil market has taken on a weaker tone in the past week, along with other commodities, as reported.
”The numbers continue to suggest a supply glut and I suspect that more talk is relevant out of OPEC and Co to help the price stand up or to help it remain relatively stable,” said Jonathan Barratt, Chief investment officer at Ayers Alliance in Sydney.
Most analysts are predicting the end of the year-and-a-half long slump, but also betting that there is little upside in the near future, according to Reuters.


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