Oil prices slumped further on Wednesday, February 8, as a larger-than-expected increase in U.S. crude stocks reinforced views that American oil producers could thwart efforts reduce global oversupply.
April Brent crude LCOJ7, -0.76% on London’s ICE Futures exchange fell 45 cents, or 0.8%, to $54.59 a barrel.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March CLH7, -1.09% traded at $51.57 a barrel, down $1.17, or 0.6%, in the Globex electronic session
Oil prices tumbled late Tuesday after American Petroleum Institute data showed U.S. crude stockpiles rose by 14.2 million barrels last week. If confirmed by the U.S. Energy Information Administration later today, it would be the largest weekly gain since October, Marketwatch reports.
Analysts and traders surveyed by The Wall Street Journal forecast that U.S. crude inventories rose by 2.5 million barrels in the most recent week, while gasoline stocks rose by 1.1 million barrels.
“We’d rate any increase more than the 1.7 million barrels [of crude] five-year average again as bearish on a seasonally adjusted basis,” said Tim Evans, a Citi Futures analyst.
Oil prices rose sharply after OPEC and other major producers agreed to cut output by almost 2% in November, but they have rarely broken out of a narrow $52 to $54 a barrel range since the start of the year.
ICE gasoil for February changed hands at $483.00 a metric ton, down $2.75 from Tuesday’s settlement.
Oreo Cookies Maker, Mondelez’s Revenue Slumps by 8.1% to $6.77 billion
Maker of Oreo cookies and Cadbury chocolates, Mondelez International Inc (MDLZ.O),
reported lower-than-expected holiday-quarter sales and profit due to a strong dollar that eroded the value of sales outside the United States.
The company, which gets more than 75 percent of its sales outside the United States, also said that it expects its 2017 revenue growth to be hit by 1 percent and adjusted earnings to be down by 3 cents per share due to the strong dollar.
The average value of the dollar rose 2.3 percent against a basket of currencies in the fourth quarter, from a year earlier.
Mondelez said its fourth-quarter sales in Europe, its largest market, was down 4.7 percent. However, they were up marginally on a constant currency basis.
The world’s second-largest confectionary company last month raised prices for some of its products as it grapples with higher commodity costs.
The Deerfield, Illinois-based company’s net revenue fell 8.1 percent to $6.77 billion in the quarter.
Analysts on average had expected revenue of $6.89 billion, according to Thomson Reuters I/B/E/S.
Net income attributable to Mondelez was $93 million, or 6 cents per share, in the quarter ended Dec. 31, compared with a loss of $729 million, or 45 cents per share, a year earlier.
Excluding items, Mondelez earned 47 cents per share, missing the average analyst estimate by a cent.
