Under pressure from the US supply, oil prices deteriorate

On Thursday, oil prices were weighed by data showing a smaller withdrawal than expected in US raw stocks, along with concerns about the global economy.

Gross Crude Futures (LCOc1), the international oil price benchmark, were down 2 cents or 0.03 percent to $ 63.80 per barrel up to 1055 GMT. Brent closed 2.3% on Wednesday.

US raw income in West Texas dropped 23 cents or 0.40% to $ 57.11 a barrel. WTI closed 1.9% on Wednesday.

The markets seemed largely unimpressed by pre-trial detention in Gibraltar by the British Royal Marines of a super-tanker possibly carrying Iranian crude oil linked to Syria as tensions between Iran and the United States were sparked during the mysterious attacks on tankers in the Gulf of Oman in recent months .

“Earnings were limited by the Energy Information Administration (EIA) reporting a 1.1m barrel weekly wreck in unprocessed stocks versus the 3 million barrels predicted by analysts and 5 million barrels reported by API the day before,” he said. Cantor Fitzgerald Europe.

“Also securing the headscarf was a sign of a return to Venezuela’s oil exports in June and the rise in Argentinean production in May,” she added.

American inventories fell less than expected, as US refineries consumed last year’s crude less than a week ago and processed 2% less oil than a year earlier, EIA data showed, despite being in the middle of the gasoline season.

This suggests that oil demand in the United States, the world’s biggest fragile consumer, may slow down among the signs of a weaker economy. New commodity orders for US factory goods fell for a second month in May, government data showed on Wednesday, adding economic worries.

Weaker US data followed a sluggish business growth report last month also in Europe.

Stephen Innes, managing partner, Vanguard Markets said, “Leaving aside the short-term nature of fluctuations around inventory data, it’s impossible to escape from the economic reality that we are in the midst of a decline in global output.”

However, some analysts believe the global economy remains strong and that demand is likely to be strong.

Tamas Varga of PVM wrote, “The composite index of Shanghai is about the same as when Donald Trump invaded the White House and it is worth remembering that global GDP growth, though recently revised by the IMF, is expected to be 3.3% healthy this year and 3.6% in 2020. The fear of recession? What recession? ”

However, uncertainty over demand was slightly offset from the point of view of global supply.

The product will remain limited as the Organization of Petroleum Exporting Countries and other producers like Russia, a group known as OPEC +, agreed on Tuesday to extend oil production cuts by March 2020./Investing.com

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