Confidence about stronger inventories in the globe's top consumer prompted West Texas Intermediate crude oil futures to lose value on Tuesday as the energy commodity fell for a second consecutive trading session, according to Bloomberg.
A survey of analysts and economists administered by the news service determined strong belief that supplies increased by 2 million barrels last week. The official data is slated to be released on Wednesday by the Energy Information Administration, an arm of the U.S. Department of Energy.
The energy commodity also is being impacted by the ongoing faceoff between Ukraine and Russia, whose troops are in the Crimean Peninsula. Russia's policy in the region must be adjusted by next week or the nation risks the levying of additional sanctions, the European Union said.
"The fundamentals for WTI are weak," analyst and broker Gene McGillian with Tradition Energy in Stamford, Connecticut told the news source on Tuesday. "Crude production in the U.S. is near multidecade highs, and as a result, storage levels are increasing,"
At 10:22 a.m. on Tuesday, WTI crude oil futures fell 0.39 percent, a 39-cent loss to $100.73 per barrel. Brent crude oil futures edged up 0.07 percent, an 8-cent lift to $108.16 per barrel.
Supplies in the U.S. have grown nearly 4 percent since late January, according to data released by the EIA. Totals stood at 363.8 million most recently, pushing to its top level in about eight weeks.
Industry group the American Petroleum Institute is slated to release its own data about inventories during the afternoon of Tuesday. That information draws from information from refineries, bulk terminals and pipelines.
Losses come after gains
This week's losses come after gains last week, when Russian troops pushed into the region of Ukraine, The Associated Press reports.
Ukraine's prime minister was ousted last month and Russia President Vladimir Putin vowed to preserve the integrity of Russian nationals with the use of military forces. Russia is among the globe's top generators of crude oil.
Concerns spread about tensions spreading between western powers and Russia after widespread discussion about sanctions. Russia indicated that it is working on producing a counterproposal to the U.S. plan to negotiate resolution of the crisis. Russia does not approve of the West-friendly rulership now in place in Ukraine and Russian military forces are emboldening their presence in Crimea. The voting public of Crimea is scheduled to chime in on the matter when the country conducts a vote on a referendum regarding the region's proposed independence from Ukraine.
Saudi production rises
Reuters reports daily generation of the energy commodity by the top producer of the Organization of the Petroleum Exporting Countries climbed from January to February.
Citing an unnamed industry source, the news service stated February production climbed to 9.849 million barrels per day after having checked in at 9.767 million barrels per day in January.
But the amount of crude oil that Saudi Arabia provided to the market fell during that same time period. In February, Saudi Arabia provided 9.899 million barrels per day to the market, which fell from 9.916 million barrels per day during the month prior.
"Production was up but it doesn't indicate anything, the market is stable, balanced," the source told the news outlet.
Production of crude oil from Iraq pushed to 3.5 million barrels per day in February and the top amount of exports for the month checked in at 2.8 billion, Reuters reports.
Libya, another member nation of OPEC, is coping with demonstrations at oil ports and fields in various locales of the North African nation. That has prompted production to fall to about 230,000 barrels per day after registering at 1.4 million barrels per day in July.
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