Oil Falls to Lowest in Almost Seven Years Amid U.S. Supply Glut
- Crude stockpiles swelled by 4.8 million barrels last week: EIA
- White House announces support for deal to lift oil-export ban
Three Factors Impacting the Outlook for Oil
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Oil closed at the lowest level in almost seven years after U.S. crude inventories surged and the Federal Reserve raised interest rates for the first time in almost a decade.
Futures fell 1.6 percent in New York adding to Wednesday’s 4.9 percent decline. U.S. stockpiles climbed to 490.7 million barrels last week, the highest level for this time of year since 1930, the Energy Information Administration reported Wednesday. Goldman Sachs Group Inc. warned of “high risks” that oil may fall even lower as supplies swell. The Fed’s decision bolstered the dollar, diminishing the appeal of commodities denominated in the U.S. currency.