Larger-Than-Expected Decline in U.S. Supplies Fails To Support WTI Crude Futures

U.S. crude futures price reversed lower after having briefly spiked following U.S. government data that showed domestic crude supplies fell more than expected.

August West Texas Intermediate crude lost around 0.1 percent in North American trading session after having jumped to as high as $44.170 per barrel. Data released by the U.S. Energy Information Administration on Wednesday showed U.S. crude stockpiles fell by 2.5 million barrels for the week ended June 16, topping analysts’ expectation calling for a decline of 2 million barrels.

However, EIA’s data failed to support the price due to rising concerns over a renewed glut in global supply. U.S. explorers have been boosted the number of rigs drilling for oil. Indeed, the U.S. oil rig count was reported to continue to rise, up by 6 last week.

The rise extended the upward rally to a 22nd in a row, adding concerns over high global supplies despite an OPEC-led initiative to cut production to tighten the market.

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