Oil Declines as U.S. Crude Stockpiles Expand Further Amid Glut

Oil declined as expanding U.S. crude inventories kept supplies at the highest level in more than eight decades.

Futures lost as much as 1 percent, erasing a 0.9 percent gain Wednesday. Stockpiles increased for a second week to 507.6 million barrels, the most since 1930, according to an Energy Information Administration report. Prices won’t recover until the second half of next year at the earliest, Mexican Energy Minister Pedro Joaquin Coldwell said at a conference in Houston, estimating that the market is oversupplied by about 2 million barrels a day.

West Texas Intermediate for April delivery fell as much as 32 cents to $ 31.83 a barrel on the New York Mercantile Exchange and was at $ 31.86 at 3:05 p.m. Hong Kong time. The contract rose 28 cents to $ 32.15 Wednesday. Total volume traded was about 26 percent above the 100-day average. Prices lost 30 percent last year.

Brent for April settlement lost as much as 39 cents, or 1.1 percent, to $ 34.02 a barrel on the London-based ICE Futures Europe exchange. The contract advanced $ 1.14, or 3.4 percent, to $ 34.41 on Wednesday. The European benchmark crude was at a premium of $ 2.24 to WTI.

Source: Bloomberg

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Japan Stocks Expand Losses After Tankan, Yen Gains

Japan stocks extended their downward drive early Wednesday, with domestic data, foreign stock cues and the yen all playing a role in the losses.

The Nikkei Stock Average slipped 0.7 % on top of the previous day’s 1.1% pullback, while the broader Topix gave up 0.8%. The moves followed a sharp decline for U.S. indexes, as well as the Bank of Japan’s closely watched quarterly “tankan” business-sentiment survey, which showed indexes for the largest enterprises missing expectations from a Wall Street Journal survey and forecasting a drop in capital spending this fiscal year. While the yen showed no immediate response to the tankan, it began rising once the stock market opened, with the U.S. dollar dropping back below the Â¥ 120 mark.

Source : MarketWatch

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