Futures in New York increased 0.6 percent after a 1.9 percent drop on Tuesday. U.S. crude inventories rose 3.43 million barrels last week, the American Petroleum Institute was said to report. That compares with a 1.23 million-barrel gain in a Bloomberg poll of analysts ahead of Wednesday’s government data. The oil market has priced in a more than 50 percent probability that the U.S. will sanction Iran, according to Standard Chartered Plc.
Oil rallied to a three-year high last month ahead of the decision on Iran by President Donald Trump and as conflicts in the Middle East heat up. While the U.S. continues pumping record amounts of crude, Goldman Sachs Group Inc. expects only a “moderate” response to higher prices from American shale producers. It also sees an increasing likelihood that the Organization of Petroleum Exporting Countries and allies will extend their supply cuts through next year.
Futures for September delivery were 0.3 percent lower at 441.2 yuan per barrel on the Shanghai International Energy Exchange. Trading on the bourse was closed on Monday and Tuesday for Chinese public holidays.
If the API’s stockpiles data is reflected in the government announcement, it would be the biggest build since early March. The industry body was also said to show crude inventories in the American oil-storage hub of Cushing, Oklahoma, rose by 725,000 barrels last week. Gasoline stocks increased by 1.6 million barrels while distillates declined 4.08 million.
more at: https://www.bloomberg.com/news/articles/2018-05-02/oil-holds-losses-as-industry-data-show-u-s-stockpiles-expanded