Energy sector shares tracked the slide in crude prices and weighed on the S&P 500, which had been trading higher earlier in the session.
Action Economics said the weekly API inventory report revealed a 2.8 million barrel increase in us crude supplies, versus expectations for a 2.5 million barrel decline.
The Organization of the Petroleum Exporting Countries agreed to extend that deal that began in January through March 2018, but ongoing growth in US production, along with exemptions for non-members Nigeria and Libya, have offset those cuts to some extent. The American Petroleum Institute signaled USA inventories probably climbed a second week, ahead of data from the EIA forecast to show a decline.
The TSX shed 4 points on Tuesday, with losses in financials, materials, and telecoms offsetting gains in info tech and energy.
Oil inventories across the world's most industrial nationsrose in April by 18.6 million barrels to 3.045 billion barrels, thanks to higher refinery output and imports.
While those supply reductions should eventually succeed, progress is much slower than expected, the IEA said.
Producers inflated oil stockpiles at the end of last year by ramping up exports just before their agreement started, and demand growth has disappointed so far this year.Читайте также: Kane silences Scotland's celebration with late leveller
United States crude production this year is expected to rise by 430,000 b/d, with production ending 2017 around 920,000 b/d higher than at year-end 2016.
The U.S. benchmark for crude was down 56 cents to $45.90 a barrel after the report's release.
OPEC and non-OPEC countries chose to extend oil output cuts for nine months in Vienna on May 25.
OPEC raised the forecast demand for its crude this year by 100,000 bpd to 32.02 million bpd, below its May output. USA light crude CLc1 was at $45.86 per barrel, down 22 cents. While the news on the cutback extension may boost oil prices in the short term, however it is unlikely to go above $55 in the medium term as flexible Shale producers have become the main determinant of the marginal prices of oil.
The currency used to express re-balancing is the five-year average level of oil stocks.
Crude prices have fallen more than 10 per cent since late May, pulled down by heavy global oversupply that has persisted despite a move led by the Organization of the Petroleum Exporting Countries to curb production.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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