Oil prices have fallen following an increase in US oil inventories.

Brent crude declined 62 cents at $56.42 a barrel, while the US crude traded down 71 cents and held above $50 a barrel, Reuters reported.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The American Petroleum Institute (API) released industry data on Tuesday, which highlighted an increase of 2.3 million barrels in crude inventories last week at the Cushing, Oklahoma hub.

"The US crude oil stocks build reported by the API last night is weighing on prices."

PVM Oil Associates analyst Tamas Varga told the news agency: "The US crude oil stocks build reported by the API last night is weighing on prices."

Oil traders are now keenly watching Energy Information Administration (EIA) today to get further clarity on the crude inventories.

The build-up of oil inventories is against that of analysts’ expectation of a 1.6 million-barrels decline in stockpiles.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

A decline in dollar value by 0.02% made it cheaper for other currency holders to purchase oil contracts, which helped the crude oil prices to fall further.

Sources said that China’s diesel exports are expected to increase in August as its local market is not in a position to absorb more output from refineries, which could put further pressure on prices.