Written by Kim Bardsley.
Crude oil prices were falling on the New York Mercantile Exchange this morning (July 22nd), extending losses seen late yesterday after the latest demand report from the Energy Information Administration (EIA).
Analysts had expected US crude inventories to have declined by around one million barrels last week, but the EIA figures revealed a gain of 360,000 barrels, taking total stocks to 353.5 million barrels.
In the Asian trading session, this data pushed prices lower, with the headline crude contract moving towards $76 a barrel.
However, there was also support for prices coming from a falling dollar, which made dollar-priced commodities such as crude and heating oil more attractive for foreign investors.
Speaking to Reuters, Ken Hasegawa, a commodity derivatives manager at brokerage Newedge in Japan, said the markets cannot take confidence in global economic recovery.
"Everyone understands that the US inventory level is relatively high. That is one of the bearish factors that may be capping [prices] down," he added.
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