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Oil Drops as US Crude Inventories Increased

Oil futures fell due to increase in US crude inventories which were more than double of the market expectations. Today the US Energy Information Administration reported a 3.3 million-barrel climb in crude inventories.

Strength in the dollar increased pressure on dollar denominated oil. Additionally it points to the growth in domestic oil production from the US which results in not relying on importing foreign oil and would be in the form of Brent oil. As the US economy continues to strengthen oil prices are going to increase as there is a positive correlation between oil prices and the S&P 500 index. 

Source: MarketWatch