ONE: Crude oil price falls as stockpile cont to build
An increase in the US stockpile of crude oil indicates that demand for the fuel continues to flounder.
The price of crude oil fell in New York on Wednesday (September 22nd), as the dollar picked up from its worst position against the euro since April.
According to Bloomberg, increasing supplies of US crude prompted fears that the recovery is not occurring fast enough to reduce excess supplies of the fuel.
Futures fell by 1.5 per cent after the Energy Department revealed that stockpiles increased by 970,000 barrels last week, to 358.3 million in total.
CFD trading will have been impacted by the news, with one analyst suggesting to the news provider that crude oil remains "in a tight range".
Andrey Kryuchenkov, a London-based VTB Capital analyst, said: "Yesterday's data was moderately bearish, with rising imports and refinery processing rates still up. A slowdown in imports would really help reduce stockpiles."
The news is likely to have a knock-on effect on currencies that are closely linked to commodities and the energy sector, such as the Canadian dollar.
Yesterday, it fell from an unexpected six-week high against the US currency, as a result of poorer-than-expected retail sales.
