Oil rebound falters as IEA hints at record-high stocks

Oil rebound falters as IEA hints at record-high stocks

Oil stockpiles in member countries of the Organization for Economic Cooperation and Development, which groups the world’s richest nations, may come approach a record high 2.83 billion barrels by mid-2015, said the IEA, which advises the West on energy policy.

Ian Taylor, chief executive of Swiss-based, Dutch-owned energy and commodity trader Vitol, added to the bearish sentiment, telling the International Petroleum Week industry conference in London that he expects a “dramatic” build in oil stocks over the next few months.

Analysts polled by Reuters, meanwhile, estimated U.S. commercial crude stockpiles likely rose 3.8 million barrels to reach a record high last week.

U.S. crude was down 50 cents, or 1 percent, at US$52.36 a barrel at 9:25 a.m. EST (1425 GMT), after hitting a session low at US$51.86. It had gained nearly 10 percent over the past three sessions, and almost 19 percent in a broader rebound between Jan. 29 and Feb. 9.

Benchmark Brent crude was flat, trading 7 cents up at US$58.41, recovering from a low of US$57.41 earlier in the day.

(Additional reporting by Adam Rose in Beijing; Editing by Dale Hudson, Louise Heavens and Peter Galloway)

Leave a Reply

Your email address will not be published.