Both crude benchmarks dropped sharply on Tuesday before the release of the US crude stockpiles report.
Prices for the North American West Texas Intermediate (WTI) crude for June delivery went down 1.34% to $56.23 per barrel on the New York Mercantile Exchange at the time of writing. The European benchmark Brent crude for June settlement slid 1.16% lower to $64.08 a barrel on the London-based ICE Futures Europe exchange.
Crude Stockpiles Report
A weekly US crude stockpiles report from the American Petroleum Institute is due to be released later in the day, while a separate report from the Energy Information Administration is expected to be released on Wednesday. Analysts projects the US crude stockpiles will climb by 2.5 million barrels in the week ending April 24.
A report released by the Energy Information Administration last week revealed oil inventories in the US climbed to a record of 5.3 million barrels in the week ending April 17.
Meanwhile, comments made by Saudi Arabia’s Oil Minister Ali al-Naimi also weighed on crude prices. “Asian demand for oil remains strong and we are ready to supply whatever is required. Oil will retain its preeminent position and Saudi Arabia will remain the number one supplier,” he said.
The minister also added that the nation is ready to supply additional oil to China if necessary.