This is the cause that 'blocks' the strengthening of crude oil!


 Strength in black commodity trading faltered again after the latest weekly data showed a big increase in US crude oil inventories.

The American Petroleum Institute (API) reported oil supplies jumped 7.8 million barrels in the week ended December 9, far short of expectations for a 3.6 million barrel decline.

In addition, an increase can also be seen in gasoline inventories of 900,000 barrels and distillate stocks increased by 3.4 million barrels, according to API data.

The inventory data countered bullish sentiment which had previously risen 3% on hopes of a revival in Chinese demand and a weakening US dollar following a weaker US inflation report.

Also supporting crude oil trade this week was the continued disruption of the Canada-US Keystone pipeline affected by the oil spill in Kansas.

Towards the end of the Asian session, Brent crude oil futures traded hovering at $80 a barrel while US WTI traded at $75 a barrel.