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Oil prices mixed, U.S. inventory build-up heightens oversupply concerns

Published 04/01/2020, 08:38 AM
Updated 04/01/2020, 08:40 AM
© Reuters.
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By Yuka Obayashi
TOKYO, April 1 (Reuters) - Crude oil benchmarks opened the
month mixed on Wednesday, following their biggest-ever quarterly
and monthly losses, overshadowed by fears of global oversupply
as data showed a bigger-than-expected rise in inventories in the
United States.
Brent crude LCOc1 was down by 21 cents, or 0.8%, at $26.14
a barrel by 0032 GMT, while U.S. West Texas Intermediate crude
Clc1 was up by 27 cents, or 1.3%, at $20.75 a barrel.
U.S. crude inventories rose by 10.5 million barrels last
week, far exceeding forecasts for a 4 million barrel build-up,
data from industry group the American Petroleum Institute
showed. Wednesday's opening session left oil prices marooned near
their lowest levels since 2002 amid the global coronavirus
crisis that has brought worldwide economic slowdown and slashed
oil demand. Crude futures ended the quarter down nearly 70%
after record losses in March.
The bearish mood in the market wasn't improved by a rift
within the Organization of the Petroleum Exporting Countries
(OPEC). Saudi Arabia and other members of OPEC were unable to
come to an agreement on Tuesday to meet in April to discuss
sliding prices. "It is very unlikely that OPEC, with or without Russia or
the United States, will agree a sufficient volumetric solution
to offset oil demand losses," BNP Paribas analyst Harry
Tchilinguirian said in a report issued on Tuesday.
A Reuters survey of 40 analysts forecast Brent would average
$38.76 a barrel in 2020, 36% lower than the $60.63 forecast in a
February survey.

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