InstaForex

October 28, 2021

Black Gold Killed Disappointed by EIA Data

 Black gold traded lower after official data from the Energy Information Administration (EIA) showed a larger -than -expected increase in U.S. crude oil supplies.


Brent crude oil trading fell to a two -week low of $ 82 a barrel, after recording a 2%decline.


US WTI, meanwhile, traded gloomily at $ 81 a barrel, following a 1.8% decline recorded in the Asian session.



U.S. crude oil supplies jumped by 4.3 million barrels last week, much higher than the market forecast to increase by just 1.9 million barrels.


Still, gasoline stocks showed a decline of 2 million barrels to its lowest level in nearly four years even as U.S. consumers struggled with rising fuel prices.


In addition, oil prices were also affected after Iran said talks with six world powers would resume in late November, aimed at reviving the 2015 nuclear deal.


If an agreement can be reached, this means restrictions on crude oil from Iran will be lifted and it could increase more production.