Both Brent crude and WTI prices fell on Thursday after official data showed that U.S. stockpiles rose by 6.5 million barrels. According to the Energy Information administration, U.S. crude stockpiles are now sitting at 494.76 barrels. U.S. stockpiles nearly doubled expectations, as analysts expected an increase of 3.3 million barrels.
Brent crude futures were trading at $56.52 per barrel, down 28 cents for the session, while WTI was trading at $53.55, down 33 cents. Nevertheless, prices were prevented from falling further by indications that for the most part, OPEC nations are adhering to the imposed production cutbacks agreed upon at the end of 2016.
Dollar Continues its Slump
The Federal Reserve announced on Wednesday that it will not be raising interest rates, and though it relayed a fairly positive view of the U.S. economy, it did not signal when the next rate hike can be expected. The dollar traded at 113.28 yen during Thursday’s Asian session, down from Wednesday’s high of 113.95, while the euro showed a slight rebound off Wednesday’s low, trading at $1.08125 on Thursday. The dollar index was down 0.2 on Thursday morning, to 99.45 .DXY.
The British pound continued to strengthen after strong UK economic reports were released on Wednesday and Brexit policy continues to solidify. The Bank of England is expected to release its inflation report later today and to recommit to its neutral policy stance.