Oil drops 3pc as Citi warns of slower growth
Oil prices fell as much as 3pc yesterday after data indicating new record highs in US crude inventories added to worries about global oversupply.
Stockpiles at the Cushing, Oklahoma, hub for US crude deliveries rose by over 503,000 barrels to reach above 67.5m barrels between February 19 and 24, it was reported. Inventories for all of the US are at all-time peaks above 507m barrels.
"Throwing in a further Cushing build to the overall record in stocks makes it very difficult for this market to rally," said Pete Donovan, broker at New York's Liquidity Energy. Meanwhile, economists at Citi cut their forecast for this year's global economic growth to 2.5pc from a previous 2.7p. Global growth prospects are deteriorating, the economists added. (Reuters)