Inventories increase better than expected Oil prices fell 3.2% to $90.20 on Wednesday

The early morning news of October 27, Beijing time, on Wednesday, US official data showed that last week's commodity crude oil inventories exceeded market expectations growth, oil prices stopped rising for three consecutive trading days, the main crude oil contract fell to $ 90.20 a barrel.

On the New York Mercantile Exchange, the main crude oil contract in December fell 2.97 US dollars Wednesday to close at 90.20 US dollars a barrel, a decrease of 3.2%. The contract has risen by $7.10 in the past three trading days.

The market Wednesday mainly awaited the final resolution of the EU leaders’ summit on the regional debt crisis. The Brussels summit is expected to come up with a comprehensive plan to limit the development of the sovereign debt crisis in the euro area. Tim Evans, an analyst with Citigroup's vision division, pointed out in his client report on Wednesday that "though No resolution is a disappointing news to a certain extent, but this is the 14th Summit of European Union leaders in the past 21 months. All the results are similar, and from a certain point of view, consistency has been maintained."

Tim Evans pointed out in the report, "This plan, we first pretend to have such a plan to some extent, hoping to get through."

Some analysts also pointed out that crude oil’s 7.1-dollar rise in the past three trading days, including Tuesday’s close at 12-week high, technically closed earlier this week to a key position above US$91 per barrel. Pressure on Brent crude, the European benchmark, will help oil prices continue to rise in the near future.

However, the inventory report on Wednesday showed an unexpected trend of growth, which put a lot of pressure on the US benchmark contract price. The U.S. Department of Energy’s Energy Information Agency reported that during the week ending October 21, US crude oil inventories increased by 4.7 million barrels, which was far higher than the market survey showed. The average analysts’ inventories increased by 200,000 barrels. Among them, the delivery of the New York oil contract, Cushing, Oklahoma increased the number of inventories by 400,000 barrels.

The report also pointed out that gasoline inventories were reduced by 1.4 million barrels last week, and distillate stocks including diesel and distillate fuels were reduced by 4.3 million barrels; previous market surveys showed that analysts generally expect to end on October 21 During the week, gasoline stocks will be reduced by 1.25 million barrels and distillate stocks will be reduced by 1.5 million barrels.

Prices of both energy products fell after the inventory report was released: November's formula gasoline contract fell 5 cents to close at 2.65 US dollars per gallon, a decrease of 1.8%; November distillate fuel oil fell 3 cents to close at a gallon $3.02, a decrease of 1.1%. Both groups of contracts will expire later this week.

The Energy Information Administration will release the latest gas inventory data on Thursday. Market surveys show that analysts generally expect US natural gas inventories to increase by 88 billion cubic feet to 92 billion cubic feet in the week ending October 21.

The November gas contract, which will expire after Thursday’s trading day, fell 7 cents Wednesday to close at $3.59 per million British thermal units, a decrease of 1.9%.