Oil Holds Near Two-Year High on Prospect of More Saudi Arrests
- API report said to show inventories dropped less than expected
- Oil is sitting in overbought territory, technicals show
Oil Is Bad at Pricing In Geopolitical Risk, Says Blanch
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Oil extended its decline after an industry report was said to show disappointing numbers for crude and gasoline stockpiles.
Futures slid further in after-market trading in New York following the release of data from the American Petroleum Institute, which was said to show a 1.56 million-barrel drop in crude inventories last week. Analysts surveyed by Bloomberg expect to see a 2.45 million decline when the Energy Information Administration releases its data on Wednesday. The API numbers were also said to show a rise in gasoline storage, when traders were expecting a decline.