Oil drops as US stockpiles forecast to rise a 4th week

Bloomberg

Oil dropped as US stockpiles were forecast to have expanded for a fourth week, raising questions about OPEC’s success in draining a global oversupply.
Crude in New York lost as much as 1.4 percent. Inventories in America rose by 3 million barrels last week, according to a Bloomberg survey. Oil has struggled to regain January’s highs as equities remain weak and a stronger dollar reduces the appeal of commodities priced in the US currency. The Organization of Petroleum Exporting Countries has reiterated not just its commitment to rebalancing the oil market, but possibly even extending the alliance with Russia beyond this year. Yet, traders’ are primarily focused on US supplies, according to Saxo Bank A/S.
“US inventories, which are surveyed to show a rise, together with weaker stocks and a stronger dollar, are pushing oil lower,” said Ole Hansen, head of commodities strategy at Saxo.
“It could signal some renewed short-term weakness.” West Texas Intermediate for April delivery fell 72 cents to $61.07 a barrel on the New York Mercantile Exchange as of 10:09 a.m. London time. Total volume traded was about 18 percent below the 100-day average.