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Fears of falling demand, surging U.S. stockpiles send oil prices plunging


Crude oil prices tumble on concerns over weakening global demand and a U.S. supply glut, dragging prices back to the bottom of their recent range; WTI -2.7% to $51.83/bbl, Brent -2.4% to $60.77/bbl.

The U.S. Energy Information Administration yesterday cut its 2019 world oil demand growth forecast by 160K bbl/day to 1.22M bbl/day, a 15% cut from the prior month’s forecast, playing into concerns about global economic growth driven partly by trade tensions between the U.S. and China.

U.S. crude inventories spiked by 4.85M barrels in the week ended June 7 to 482.8M barrels, according to data from the American Petroleum Institute, compared with analyst expectations for a decrease of 481K barrels.

Today’s release of the U.S. Energy Information Administration’s weekly inventory report will be closely watched; supply data have been unseasonably bearish in recent weeks.

Despite low oil prices, U.S. shale producers will continue to produce an all-time high 12M bbl/day throughout next year, perhaps going up to as high as 13M bbl/day, U.S. Deputy Energy Secretary Dan Brouillette tells CNBC.

ETFs: USO, XLE, OIL, UWT, UCO, DWT, SCO, BNO, DBO, DTO, USL, OLO, SZO, OLEM, WTIU, OILK, OILX





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