PR: US crude drops on inventories report, Brent rises above $98
The gap between US crude and London crude reached record levels today after NYMEX contracts dropped following yesterday’s inventories update, while Brent crude rose above US$98/barrel.
The inventories report released on Wednesday by the US Department of Energy showed a massive gain of 4.8 million barrels in US crude stockpiles.
The results of the Federal Reserve’s latest policy meeting proved to be supportive for oil prices. The Federal Open Market Committee (FOMC) said that the US$600 billion stimulus plan would stay in place, noting that inflation in the US remained low.
US light, sweet crude for March delivery, the most active contract on the New York Mercantile Exchange (NYMEX), declined to US$87.05/barrel. April crude dropped to US$89.26/barrel.
On the ICE Exchange, March Brent crude last traded at US$98.27/barrel.
