Crude-oil prices tumbled Wednesday, closing sharply lower on the heels of weekly crude-oil supply data late Tuesday that surprised investors, sparking fresh worries about growing U.S. crude stockpiles.
The slump in crude prices follow data from the American Petroleum Institute, which showed a surprising jump in crude-oil supplies of 6.3 million barrels for the week ended Nov. 6.
By comparison, a survey of analysts polled by energy-industry data provider Platts forecast an increase of just 500,000 barrels and a Wall Street Journal poll estimated a 1.1 million increase.
“We’ve gotten blindsided by the API [data]. That’s really put a negative spin on things,” Phil Flynn, senior market analyst at Price Futures Group, told MarketWatch. Market participants will await the more closely watched U.S. Energy Information Administration report due Thursday morning as a result of the Veterans Day holiday.
Flynn said until that data is released traders are essentially “flying blind” because of the downbeat nature of the API report.
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