Prices have lost more than 20% since their 2019 peak in April, Kallanish Energy reports.
The oilmarkets extended losses after United States government data showed that USA crude stockpiles rose unexpectedly last week, increasing 2.4 million barrels, compared with analysts' expectations for a decrease of 2.8 million barrels.
Oil prices fell despite U.S. President Donald Trump signing an executive order, declaring a total economic embargo against Venezuela, prohibiting transactions with the country, unless specifically exempted. The updated differential forecast reflects EIA's revised assumptions about the marginal cost of moving crude oil via pipeline from Cushing, Oklahoma, to the Gulf Coast.
Plus, gasoline inventories rose 4.4 million barrels, and distillates rose 1.5 million.
Prices slumped despite a modest rally in equity markets after the People's Bank of China moved to strengthen the yuan on Tuesday. As I have stated previously, the market seems to have a "zone of support" extending from the $51 level down to the $50 level.
Brent crude prices have dipped nearly 10% during the past week after US President Donald Trump announced he would impose a new 10% tax on $300-billion worth of Chinese imports starting September 1, jolting world equity markets as a result. -China trade war's adverse impact on global economic growth, crude oil prices tumbled on Tuesday. Weak demand in established markets is spurring Vitol to focus on emerging economies, he said.
Saudi Arabia plans to keep its crude oil exports below 7 million barrels per day in August and September despite strong demand from customers, to help drain global oil inventories and bring the market back to balance, a Saudi oil official said.
Going forward and Looking at the EIA's global oil supply assumptions between July and December 2019, we notice that non-OPEC supply is expected to grow from 65.5M in July to 67M barrels in December, or 1.5M barrels growth.
Meanwhile, U.S. crude production was set to rise 1.28 million barrels per day to 12.27 million bpd this year. "With energy prices heading for the worst weekly close since December, we should not be surprised to hear more rumors that OPEC may be considering increased production cut efforts ahead of key summit that is tentatively planned for the second week in Abu Dhabi", said Edward Moya, senior market analyst at OANDA in NY. His comments failed to prevent shares in Asia from falling for an eighth straight session while London's FTSE 100 .FTSE gained 0.4%.
Demand for safe-haven assets such as government debt underscored lingering anxiety over recession risks. Articles appear on euronews.com for a limited time.
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