MTECHTIPS:-Crude suffers massive nosedive, amid unexpected U.S. inventory build
WTI crude futures took a massive nosedive on Wednesday suffering one of its worst one-day falls in nearly three months, amid a surprising build in U.S. stockpiles last week. On the New York Mercantile Exchange, WTI crude for August delivery fell nearly 4.5% on the session, experiencing its lowest one-day decline since April 8. For the day, Texas Long Sweet futures dove 2.61 or 4.39%, settling at $56.86 a barrel. Previously, WTI crude had not closed under $57 since late-April. On the Intercontinental Exchange (ICE), brent crude for August delivery also fell sharply. At one point, Brent crude futures declined by more than 2.5% to close under $62 for the first time since mid-April. Brent crude settled at 61.91, down 1.68 or 2.64%. The spread between international and U.S. domestic benchmarks of crude stood at 5.05, above Tuesday’s level of 4.16. In its Weekly Petroleum Status report, the U.S. Energy Information Administration (EIA) said U.S. crude inventories last week rose by 2.4 million barrels, halting an eight week streak of weekly draws. U.S. crude stockpiles are now at 465.4 million barrels, near its highest level at this time of year in at least 80 years. Analysts had expected a draw of 2 million barrels.