HOUSTON (ICIS)--US crude oil futures snapped their longest streak of increases in more than five years on Wednesday, tracking expectations that global supply will increase.
August West Texas Intermediate (WTI) futures fell by $1.94/bbl to $45.13/bbl, a drop of 4.1% from the settlement on 3 July. No settlement was recorded on 4 July because of the US holiday.
The decline came amid expectations that Russia would push back on any new production cuts from OPEC.
Additionally, increased exports from OPEC are also expected to lengthen the global crude oil market.
Wednesday’s decline was the first in nine sessions, the longest run of increases seen since 2010.
The American Petroleum Institute (API) said it is expecting a drawdown of around 3m bbl in US crude inventories for the week ended 30 June.
US Energy Information Administration (EIA) data on inventories was scheduled to be released on 6 July, a day later because of the US 4th of July holiday.
Following the August WTI contract settlement, futures prices continued to fall, shedding around 10 cents/bbl.