Brent Near Two Week High On US Inventory Expectations

Brent crude oil made its way above $109 on Wednesday morning as expectations rose for a drop in US oil inventories and the situation in Ukraine continued to deteriorate. The commodity traded at $109.41 at 6:15 GMT, near a two week high.

 

With the US approaching its summer driving season, analysts expect data to show that US stockpiles fell last week. On Tuesday, the American Petroleum Institute released a report showing that stocks of crude oil in Cushing, Oklahoma fell 590,000 barrels last week and nationwide crude stocks were up 912,000 barrels.

 

The US Energy Information Administration is set to release its more closely watched version of the report later on Wednesday, which most are expecting to show a draw in US stocks. According to CNBC, analysts see Brent rising above $110 per barrel if the data comes in as expected.

 

Meanwhile, escalating tension in Ukraine has kept oil prices supported. After the EU imposed new sanctions that targeted 13 people and two Crimean companies, Russia responded by saying the sanctions are hampering efforts to de-escalate the conflict. Following the secession vote over the weekend, the Kremlin has been working to persuade the Ukrainian government to negotiate with eastern Ukrainian separatists ahead of the nation’s May 25th presidential elections. Now, Moscow has called on the US to help persuade Kiev to hold the talks.

 

However, the nation seems to be slipping further and further out of Kiev’s control as fighting between pro-Russian separatists and the Ukrainian military rages on. On Tuesday, seven soldiers were killed and seven more suffered injuries in an ambush, marking the largest loss of life for the Ukrainian army since the conflict began.

Posted In: Cushing OklahomaEnergy Information AdministrationNewsCommoditiesForexGlobalMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.