U.S. crude stockpiles rose last week to record highs for the ninth straight week, despite oil prices that continue to fall, as the dollar strengthens. Bobbi Rebell reports.
Consumer friendly prices at the pump show no signs of going away anytime soon. Oil supplies continue to build, pushing crude prices lower for the eighth straight session. U.S. crude stockpiles rose last week to record highs for the ninth straight week, according to the U.S. Energy Information Administration. They stand at nearly 490 million barrels. Jeff Mower, Director, Americas Oil News at Platts: SOUNDBITE: JEFF MOWER, DIRECTOR, AMERICAS OIL NEWS, PLATTS (ENGLISH) SAYING: "When you think about this price collapse, it has been big. But it has acutally been over a relatively short amount of time considering how long it takes for that production to slow down. So you've seen crude prices drop what maybe 50% since last June, and you have seen rigs drop. So the actual drilling rig activity has slowed down, but a lot of that hasn't really translated into a drop in crude production yet, because you know a lot of those rigs are more efficient." While oil is up roughly 10 percent from a bottom in late January, it remains down more than 55 percent from a June high. The dollar also pressured oil, as the greenback soared to a new 12-year high against the euro. Luke Rahbara is a partner at Sutland Volatility Group: SOUNDBITE: LUKE RAHBARA, PARTNER, SUTLAND VOLATILITY GROUP (ENGLISH) SAYING: " Commodities are priced in dollars, and oil trades 24 hours a day globally, so you can say it's its own currency. It is the biggest commodity in the world, and as the dollar continues to go up, right, these other producers - these other oil producing countries, are all pegged to the dollar. They either have to produce more to get the same amount of dollars that they were initially expecting, so oil production has gone up a little bit, they're trying to make up for that loss of revenue. The dollar continues to go up, it drives the price of oil down." Brent oil has been more stable, rebounding from its one-month low on Wednesday.