Light crude oil for June delivery on the New York Mercantile Exchange (NYMEX) was down 0.61% at $105.50 a barrel this afternoon due to rising inventories and weaker ADP figures.
The unexpectedly lower US ADP jobs report which came out earlier today sent crude tumbling. The ADP report showed the number of new jobs added to the US economy only rising by 119,000 in April, way below expectations of 170,000. The figure for March was also revised downward to 201,000. On the supply side, crude oil futures extended declines after the US Energy Department said stockpiles rose to the highest level in 21 years.
According to the report, supplies increased by 2.84 million barrels to 375.9 million, whereas inventories were forecast to gain by 2.5 million barrels. Stockpiles at Cushing, Oklahoma, the delivery point for New York futures, gained 1.21 million barrels to a record 43 million.