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Oil price falls 1.5 percent as US oil inventories rise

2019-06-12 08:47 am | Resource: News | No Views : 92

   Oil price  falls 1.5 percent as US oil inventories rise

Crude oil prices fell sharply on Wednesday after a worse-than-expected report from the US Petroleum Institute, suggesting a substantial increase in US crude inventories. On Tuesday, traders learned that the API report showed a 4.9 million barrel rise last week.

Oil prices fell following unofficial estimates - a surprise surge in crude and gasoline stocks in the United States last week, ahead of a meeting of OPEC delegates and independent producers to discuss the future of the planned supply curbs on Thursday. At the same time, market observers have also digested the expectations of the Energy Information Administration (EIA), which had forecast weak growth in world oil demand this year. According to the report, global demand for crude oil fell by 160,000 barrels per day to 1.22 million bpd.

Putin visits Saudi Arabia in October

Political signals from Moscow and Riyadh on Monday made investors more confident that a global agreement on oil production limits would be extended until the end of the year. Dmitry Peskov, deputy chief of staff of Russia's presidential administration, said preparations were under way for President Vladimir Putin to visit Saudi Arabia in October.

Khalid al-Falih, the kingdom's minister of energy, industry and mineral resources, said shipments of wheat in other countries could start next month. He also expressed his confidence in the invitation of Rosatom State Nuclear Power to the third round of the process to select the developers of two nuclear power plants with a capacity of 2.8 GW.

The crude oil production quota agreement between the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and a group of Kremlin-led countries expires at the end of June. Fears of rising production Oil prices could hit sharply as the global economy slows. However, Alliance members may benefit by increasing volumes at the expense of declines in Venezuela and Iran and Libya's inability to recover. - Russian Energy Minister Alexander Novak said today that "there is a great risk of overproduction" and hinted at extending the so-called Opec deal.

The US Petroleum Institute said late Tuesday that crude inventories in the United States rose 4.9 million barrels during the week ending June 7, while gasoline stocks increased by 829 thousand barrels. Crude oil inventories were expected to rise by 80,000 barrels only, with a decline of 380,000 barrels for gasoline inventories. Official data is expected to be released by the Energy Information Administration later in the day.

Oil trading
  • West Texas Intermediate prices fell for delivery in July by 1.76%, trading at $ 52.33 a barrel at 7:56 CET.
  • While the Brent index for August fell 1.72% to trade at 61.23 dollars a barrel at 7:59 CET.

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Best Opportunities, Vision and Technical Analysis for The Oil 17 April 2019

(CURDE OIL - WTI ) We offer you oil analysis denominated by US dollar on Wednesday, April 17, 2019, with the most important forecast for the price of oil denominated by US dollars in the market. Time frame Used - four hours Oil is moving in a sideway direction in the near term. The purchasing power managed to push oil higher to close at the end of trading today, rising…

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