Inventories Push Oil Prices Down
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NEW YORK — A buildup in crude oil inventories that is pushing the price of petroleum lower took its toll on oil company stocks Thursday, pushing them lower after industry analysts told their clients to sell.
“There’s a continuing buildup of inventories and the unraveling of the OPEC consensus,” said oil analyst Albert Anton of Carl H. Pforzheimer & Co.
Traders said three oil analysts made bearish comments about the group Thursday, sending oil issues lower. The bearish sentiment was spurred by reports that the United Arab Emirates, a leading OPEC producer, would increase production next month above its cartel-mandated quota.
According to oil industry sources in Bahrain, the UAE intends to increase production to 1.5 million barrels a day, well above its quota of 948,000 barrels.
“The stocks are reacting to the story of UAE overproduction,” said Paul Ting, an oil analyst at Oppenheimer and Co.
The news sent oil prices sharply lower Wednesday, moving between 35 and 60 cents a barrel lower and setting the stage for a retreat by oil stocks.
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