Crude oil prices suffered major losses Thursday after U.S. federal data show commercial crude oil inventories surged to their highest level in 80 years.
The price for West Texas Intermediate crude oil, the U.S. benchmark, dropped 2.25 percent in early Thursday trading to sell for $48.96 per barrel. With oil markets favoring the supply side for close to a year, WTI has been unable to hold above the $50 mark for very long.
Data from the U.S. Energy Information Administration show total commercial crude oil inventories increased by 4.8 million barrels from last year to 471.4 million barrels, the highest level for this time of year in the last 80 years.
Total U.S. crude oil production for the week ending March 28 was nearly 9.4 million barrels per day, a 14.6 percent increase from the same week in 2014.
Despite early gains, the price for WTI is relatively unchanged for the week.
Crude oil prices were again pressured by ongoing nuclear negotiations with Iran and world powers in Switzerland. Talks have gone two days beyond a self-imposed Tuesday deadline.
Iranian Foreign Minister Mohammad Javad Zarif said there were still details to be discussed, but progress has been made at the negotiating table.
"We have made significant progress [but] we don't have any final result yet," he said Thursday.
Sanctions relief for Iran could mean the Islamic republic puts more of its crude oil into the international market. Iran in 2011 exported around 2.5 million bpd. Last year, exports under sanctions averaged 1.4 million bpd.
Brent crude oil for May delivery was down about 2.7 percent from the previous close to sell for $55.51 in early Thursday trading. Brent is down about 1.5 percent for the week.
