Data from the US Energy Information Administration showed Wednesday that domestic crude stockpiles dipped by -3.641 million barrels for the week ended April 21st. However, despite a decline after two weeks of inventory builds, production hit a new cycle high of 9.265 million barrels, weighing on sentiment and prices. Brent received a boost earlier on Wednesday when Saudi Energy Minister Khalid al-Falih said his country was interested in talks between OPEC and non-OPEC producers to help stabilize prices which have recently fallen.
Brent has been steadily declining after hitting an April high of $56.50 a barrel, with the benchmark locked in a tight trading range since the start of the week. From a technical perspective the bias remains bearish, with a break below support at $51.50 likely to unlock further downside. Brent July futures were last trading around $52.13 per barrel.
Crude Stabilizes Following EIA Data
Daily Analysis - 27/04/2017