Crude Oil Stays Below $30 a Barrel

USA gasoline inventories USOILG=ECI also rose to a record high, soaring 5.9 million barrels to 254.4 million barrels, mainly due to Midwest stocks for the motor fuel soaring to the highest level since 1995, EIA data showed. For the same period, analysts had estimated an increase of 3.5 million barrels in crude inventories. Moreover, gasoline stocks were also up, rising by 5.9 million barrels, while distillates fell by 777,000 barrels.

West Texas Intermediate for March delivery slid as much as 48 cents to $29.40 a barrel on the New York Mercantile Exchange and was at $29.67 at 10.55am Hong Kong time.

China consumes around 12% of world’s crude, second only to the USA, and a spate of weak economic readings in recent months added to the bearishness on the oil market. Total volume traded was about 7 per cent above the 100-day average.

Oil prices halted their rise in Asia Monday, hurt by the strengthening U.S. currency which makes the dollar-price commodity more expensive.

Oil prices were sitting higher earlier in the session after Russian Foreign Minister Sergei Lavrov on Wednesday said if the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members agree to meet to discuss ways to address the supply glut “then we will meet”.

At the Multi Commodity Exchange, crude oil for delivery in February was trading lower by Rs 42 or 1.95 per cent to Rs 2,111 per barrel in 2,817 lots.

The United States Oil ETF (NYSEMKT: USO) traded up about 1.3%, at $8.67 in a 52-week range of $7.92 to $21.50.

In New York, the Dow Jones industrial average lost 227 points, or 1.4 per cent, to 16,221.

Exxon is curbing its spending on rig leases, floating oil platforms, gas terminals and other projects by 25 percent this year to $23.2 billion after reporting its smallest annual profit since 2002.

There remains a considerable amount of noise in the market, and much of the commentary features mixed messaging, but, there is a sense that oil producers need to see better prices.