Oil drops to fresh 5-week lows as US stocks set to grow

Oil prices on both sides of the Atlantic extend weakness into a fourth consecutive session this Wednesday, as a surprise build in the US stockpiles and US election –led jitters continue to dampen investors’ sentiment.

Oil awaits EIA inventory report, FOMC

Currently, both crude benchmarks drop almost -1.50%, with Brent below $ 47.50 while WTI hovers around $ 46 mark. Oil keeps pushing lower as markets price-in another build in the US crude inventories heading into the official government stockpiles report due to be published later in the American session.

On Tuesday, oil prices fell sharply after the US API report showed an unexpected rise in the US crude stocks, with a 9.3 million barrels build in the week to Oct. 28, more than nine times the number expected by markets.

From a wider perspective, the black gold remains under pressure on the back of dwindling bets that the OPEC would reach an agreement on oil output cuts at their Vienna meeting scheduled this month end.

Focus now remains on the EIA crude reserves data and FOMC statement due later on the day for fresh direction on the commodity. The Fed decision is expected to have a major impact on the USD, eventually influencing the USD-denominated oil.