Oil Prices Fall On Bearish EIA Data | OilPrice.com:
Crude oil prices moved lower today after the Energy Information Administration reported a crude oil inventory build of 800,000 barrels for the first week of December. Besides it, the EIA also reported hefty builds in gasoline and distillate fuel inventories.
The crude oil increase compared with a 4.9-million-barrel inventory draw estimated for the last week of November—the first draw in five weeks. Analysts had been optimistic for the week, expecting a draw of over 3 million barrels but API’s Tuesday report dampened the optimism somewhat, by reporting an unexpected build of more than 1.4 million barrels for the first week of December.
Prices were already depressed even before the API report, however. Once again trade war worries and pessimism about global economic growth came to outweigh the reaction to the OPEC+ decision to deepen cuts. The short life of this reaction was also due to the fact that the agreed cuts only sound deep on paper but it remains to be seen how much they will contribute to the actual slim-down of global supplies.
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