March Crude Oil futures continued to weaken the week-ending January 15 as the market continued to get hit from bad news on both the supply and demand side of the equation.
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After finding support early in the week due to the relative calm in the global equity markets and renewed interest in higher risk assets, U.S. crude oil erased its gains after the U.S. Energy Information Administration released its weekly inventory report. The report showed that inventories of crude at Cushing, the futures market delivery hub, climbed to a record high and that gasoline and distillate inventories climbed more than expected.
According to the EIA, crude stockpiles in Cushing, Oklahoma, rose by 97,000 barrels in the week ending January 8. Total inventories of crude at Cushing climbed to a record high of 64m barrels.
Overall U.S. crude inventories rose by 234,000 barrels the previous week, smaller than the 2m barrels that traders had estimated. U.S. crude stocks rose to 482.6m barrels, keeping the inventory within striking distance of levels for this time of year not seen in the last 80 years.
Inventories of gasoline increased by 8.4m barrels in the week-ending January 8, following a 10.6m barrel increase the last day of 2015. The current increase was greater than the 8.4m barrel rise forecast by analysts.
The bearish report drove the expiring February Crude Oil futures contract below $30.00 for the first time in 12 years. In addition…