FSM News

Prices of crude oil slipped on Thursday as surging negativity over a deal between major producers to rein in supply glut an a bigger than expected United States inventory build weighed on prices.

On the New York Mercantile Exchange, crude oil for May delivery dropped 42 cents, or 1.06 percent, to trade at $41.35 per barrel.

Internationally traded benchmark on the ICE Futures Exchange in Europe, Brent crude, slumped 50 cents or 1.11 percent to $43.70.

Crude prices have sunken after reaching 2016 highs earlier in the week as elevating skepticism that a meeting of major producers in Qatar on Sunday will result in a deal to keep production output at January levels or that it will have a meaningful impact.

Both non-members and producers from the Organization of Petroleum Exporting Countries are participating in the meeting.


Russian oil minister Alexander Novak noted that any deal will be loosely framed with some detailed commitments.

Iran reported that it will not participate in an output freeze until its output levels return to where they were before international sanctions were implied.

The International Energy Agency cautioned that a deal is likely to have a little impact on global supply and markets are unlikely to rebalance before 2017.

Prices of oil are still under pressure after data on Wednesday indicated a bigger than expected hike in United States crude stockpiles.

The Energy Information Administration reported that United States crude inventories climbed 6.6 million barrels in the recent week, totaling crude stocks to a new record high of 536 million barrels.

Analysts forecasted storage build to tack on 1.85 million barrels.

The figures were released after industry group American Petroleum Institute reported United States crude stocks jumped by 6.2 million barrels to 536.3 million last week, surpassing estimates of a 1.9 million barrel surge.

The Organization of Petroleum Exporting Countries slashed its forecast for global oil demand growth in 2016 on Wednesday and cautioned of more reductions, pointing to a biggest supply surplus this year.