Oil pauses 2-day rebound on unexpected inventory build

Oil prices on both sides of the Atlantic turned negative for the first time in three days this Wednesday, as the latest API inventory report surprised to the downside and dented investors’ sentiment.

WTI back below $ 46

Currently, both crude benchmarks edge almost -0.60% lower, with Brent near $ 46.70 while WTI flirts with 45.50 levels. Oil prices is seen reversing a small portion of yesterday’s extensive rally as the bears are back in control, following an unexpected build in the US crude stockpiles, the API report showed late-Tuesday.

The API report revealed that the crude inventories climbed by 3.6 million barrels in the week to Nov. 11 to 488.8 million, compared with expectations for an increase of 1.5 million barrels.

On Tuesday, oil prices rallied almost 6% on OPEC Chief Barkindo’s comments-driven renewed optimism that OPEC remains on track to implement an output cut deal in the face of a persistent global glut.

Focus now remains on the official government figures on the crude stockpiles to be published by the EIA later on the day.

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