Oil Falls Toward $61 on Concern U.S. Inventories Expanded Again

Futures lost as much as 1.5 percent in New York. Inventories probably rose 2.9 million barrels last week, according to a Bloomberg survey before a government report later Thursday. Global equities and industrial metals also dropped after an upbeat U.S. growth outlook fueled the possibility of interest-rate hikes.

Oil has gained almost 30 percent in the past six months on expectations for robust demand and continued supply curbs by the Organization of Petroleum Exporting Countries. Yet price growth has slowed this year as U.S. drillers put more rigs to work, pushing the country’s output to a record. A strengthening dollar this week has also dragged down commodities priced in the currency.

The dollar’s gain “has started to weigh on oil prices,” said Jens Naervig Pedersen, an analyst at Danske Bank A/S in Copenhagen. “Sentiment in the oil market has been slightly bearish following the past weeks’ surge in the U.S. rig count.”

U.S. crude inventories rose by 1.84 million barrels in the week through Feb. 9, data from the Energy Information Administration show. While analysts surveyed by Bloomberg expect a further increase in this week’s numbers, the American Petroleum Institute was said to report a decline of 907,000 barrels.
more detail at:  https://www.bloomberg.com/news/articles/2018-02-22/oil-extends-decline-below-62-as-u-s-inventories-seen-expanding