Oil prices slipped on Thursday June 18, 2015  after U.S. government data showed gasoline stocks and distillate inventories rose last week, although the falls were checked by continuing Middle East geopolitical tensions and a weaker U.S. dollar.
U.S. July crude CLc1 lost 42 cents to $59.50 a barrel as of 0219 ET after falling 5 cents in the previous session.
Brent August crude LCOc1 declined 30 cents to $63.57 a barrel after it settled 17 cents higher on Wednesday at $63.87.
The EIA report also showed that operating capacity at U.S. refineries fell to 93.1 percent last week from 94.6 percent.
“Expectations were for an increase … the reaction to this (inventory) data shows that the reasoning behind such price support is fragile,” ANZ bank said in a report.
After the Federal Reserve signaled it may wait until late this year to raise interest rates, the U.S. dollar slid while Wall Street stocks rose in volatile trading. Asian equities also rose early on Thursday. [MKTS/GLOB]
“Oil prices were revived by a weakening USD as a result of a bearish FOMC,” Phillip Futures said. “Since we expect the FOMC meeting to be the main card this week, we believe that prices should move sideways for the rest of the week.”
Prices were also supported by the continuing conflicts in the Middle East.