Crude oil prices were at 6-year lows Wednesday morning ahead of government data that is expected to show another massive build in U.S. inventories.
Yesterday, industry group American Petroleum Institute (API) said after the market’s settlement that crude stockpiles rose by a whopping 10.5 million barrels in the week to March 13.
The Energy Information Department official figures are due at 10:30 am ET, and will likely confirm that U.S. inventories continue to rise at alarming rate.
Meanwhile, OPEC says it is only a matter of time before it prices U.S. shale producers out of the market.
The cartel says that American oil production will fall “possibly by late 2015,” noting the number of U.S. rigs that have recently gone offline.
Crude oil for April slipped $1.08 to $42.39 a barrel, having touched a fresh 6-year low of $42.05.
Traders were gearing up for the Federal Reserve’s highly anticipated monetary policy statement this afternoon. It is thought the Fed will drop its vow to be patient before raising interest rates.
The material has been provided by InstaForex Company – www.instaforex.com