: :inin Kyiv (EET)

U.S. oil falls after big jump in stockpiles

Oil prices fell in Asian trading on Thursday, adding to a slump in the previous session, after U.S. stockpiles rose for the sixth week to another record, sapping the strength of a two-month rally in prices, Reuters reported.
U.S. crude futures CLc1 were down 47 cents at $39.32 a barrel at 0700 GMT, trading further below the important $40 level, Reuters said.
Brent crude futures LCOc1 were down 31 cents at $40.16 a barrel, after trading lower earlier in the session. They finished the last session down $1.32, or 3.2 percent, at $40.47 a barrel.
Earlier this week, both benchmarks had risen by more than 50 percent from multi-year lows that were hit in January.
The U.S. government`s Energy Information Administration said crude stockpiles climbed by 9.4 million barrels last week – three times the 3.1 million barrels build forecast by analysts in a Reuters poll.
The continued rise in stockpiles is grinding away at the gains in prices that were largely driven by plans of major producers, including Saudi Arabia and Russia, to freeze production, according to the report.
”OPEC production is still high and Iran is expected to continue to ramp up,” said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo
”I expect crude to come back down again and test the $35 level again if we continue to get builds,” he said.


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