Oil fades as rise in stockpiles raises red flags
Americans burned through a lot less gasoline and diesel fuel than expected last week (ended 12 July), feeding into investor angst over oil demand.
Futures slid 1.5% in New York on Wednesday (17 July) to the lowest in two weeks after the US Energy Information Administration (EIA) reported inventories of gasoline and distillate fuels grew by a combined 9.25m barrels last week, well above analysts’ estimates. Crude inventories did decline by more than 3m barrels, but that was driven in part by temporary production outages related to Hurricane Barry.
Crude futures in the US have flirted with USD60.00 a barrel so far this month amid ongoing tensions with Iran and threats of a continued trade war with China. Meanwhile, in the US, operators are in the midst of re-staffing platforms in the Gulf following Barry.
West Texas Intermediate (WTI) for August delivery ended the trading session down 1.46% to USD56.78 a barrel in New York. Brent for September settlement slipped 1.07% to settle at USD63.66 a barrel in London.
WTI crashed through its 50-, 100- and 200-day moving averages this week, adding to the downward momentum. – Bloomberg News.
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