Wednesday, despite a bigger than expected drop in the United States crude inventories, the prices of oil once again fell for the third consecutive day. The International benchmark, Brent crude futures, was trading at $51.87 per barrel, down by 0.5% or 27 cents; the United States West Texas Intermediate traded at $48.96 a barrel, indicating a decline of 21 cents or 0.4%
According to the American Petroleum Institute, U.S. crude supplies have fallen by 7.8 million barrels - much more than expected. On the other hand, gasoline inventories rose surprisingly.
Bob Takai, President at Sumitomo Corp Global Research in Tokyo, said that the United States’ shale production was slowing down a bit, this is as drillers cannot make money when WTI is under $50, so a push above $50 is quite possible.
North Korea said on Wednesday that they were carefully examining plans for a missile strike on the United States Pacific Territory of Guam. This was just hours after the United States President, Donald Trump, warned North Korea that any threat it presented to the United States would be answered with fire and fury.
Due to geopolitical tensions in the Korean Peninsula, the safe-haven yen recorded an eight-week high against the greenback, which closed at 109.980 yen after declining by 0.3%. In the course of the day, the dollar touched 109.740 descending to its weakest point since June 15.