Oil down again but pares losses after US crude drawdown

Oil prices fell Wednesday, on track for their fifth straight daily decline, as global markets slid on worries that Britain might leave the EU, although crude futures pared losses following US government data on crude stockpiles.

"It's a mixed bag," Chris Jarvis, analyst at Caprock Risk Management in Frederick, Maryland, said of the data.

“In short, this data will do little to move the needle in either direction for oil prices, and the energy market will continue to get its cue from the macro-economic environment and global equity markets.”

US crude’s West Texas Intermediate futures slid 2 per cent early, then briefly turned positive and were down 10 cents, or 0.2 per cent, at $48.39.

Brent crude futures were down 40 cents, or 0.8 per cent, at $49.43 a barrel, after trading earlier at $48.67.

Oil prices have declined for the four straight previous sessions, their longest such stretch since February. Crude is down more than 5 per cent since hitting 2016 highs of nearly $53 a barrel on supply disruptions mostly out of Nigeria and Canada.

The dollar dipped against a basket of currencies, but remained close to its highest point since June 3rd, as investors worried that Britain could vote to leave the EU. A stronger dollar makes crude, priced in the US currency, costlier in the euro and others.

– (Reuters)