Oil prices fell to a new low today as U.S. storage volumes continue to rise in a trend that could carry on in the second quarter of 2015, Reuters reports.
Earlier this morning, brent oil futures was trading at $55.06, down five cents, with strengthening European manufacturing data lending contracts some support and preventing steeper price falls.
But U.S. prices felt a much bigger blow as weekly American crude stock builds appeared to increase.
“U.S. crude stocks will build through May … (which) should support bearish sentiment for now,” Morgan Stanley said, adding that there was still plenty of storage capacity left for inventory gains.
Accoridng to a poll of eight analysts forecast a crude stock build of 5.1mn barrels on average last week, Rueters has reported.
ANother report on Tuesday showed a slightly smaller build in U.S. crude stocks at 4.8mn barrels for last week.
Build figures from the EIA due out later today would confirm U.S. crude stockpiles have hit a record for an eleventh straight week, Reuters has predicted.
Â
