Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Markets

News : Markets
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

Oil loses about 2% on swelling U.S. stockpiles, demand worries

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/22/2019 | 03:20pm EDT
FILE PHOTO: FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland

NEW YORK (Reuters) - Oil prices fell about 2% on Wednesday as an unexpected build in U.S. crude inventories compounded investor worries that a trade fight between Washington and Beijing could dent crude demand over the long haul.

Brent crude futures settled at $70.99 a barrel, dropping $1.19, 1.7%. U.S. West Texas Intermediate (WTI) crude futures ended $1.71, or 2.7%, lower at $61.42 a barrel.

U.S. crude inventories swelled by 4.7 million barrels in the latest week to their highest since July 2017 at 476.8 million barrels, the U.S. Energy Information Administration reported. Analysts polled by Reuters had predicted a decrease of 599,000 barrels.

"It's at the extreme end of the range of possibilities for a bearish report," said Bob Yawger, director of futures at Mizuho in New York. "It's about as bad as it could have been considering the fact that driving season is so close."

Gasoline stocks posted a surprise build as well, rising by 3.7 million barrels compared with analysts' expectations for an 816,000-barrel drop, despite steady gasoline demand heading into peak driving season.

"Refiners are running at a subdued pace for this time of year," which contributed to the builds, said John Kilduff, a partner at Again Capital LLC in New York.

The prospect of a long-term tariff war between China and the United States also pressured prices. Additional talks between top officials have not been scheduled since the last round ended in a stalemate on May 10, when U.S. President Donald Trump imposed the higher levies on Chinese goods.

U.S. Treasury Secretary Steven Mnuchin said Washington is at least a month away from enacting its next round of tariffs on Chinese imports as it studies the impact on consumers.

The conflict is weighing on economic growth forecasts and oil demand predictions. The Organization for Economic Co-Operation and Development (OECD) on Tuesday revised down its global growth forecast for the year.

A slump in equities, which oil futures often follow, deepened the fall in oil prices.

Growing tensions between the United States and Iran, which could lead to supply disruptions, helped limit losses.

The prospect that the Organization of the Petroleum Exporting Countries and its allies will continue its output cut pact later in the year was also supportive.

Saudi Arabia, OPEC's de facto leader, said it was committed to a balanced and sustainable oil market.

U.S. bank Morgan Stanley said it expected Brent prices to trade in a $75-$80 per barrel range in the second-half of this year, pushed up by tight supply and demand fundamentals.

(Additional reporting by Stephanie Kelly in New York, Shadia Nasralla in London, Henning Gloystein in SINGAPORE and Aaron Sheldrick in TOKYO; Editing by Marguerita Choy and Phil Berlowitz)

By Laila Kearney

Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL 0.21% 26827.64 Delayed Quote.14.76%
NASDAQ 100 0.91% 7940.330875 Delayed Quote.25.47%
NASDAQ COMP. 0.91% 8162.987048 Delayed Quote.22.93%
S&P 500 0.69% 3006.72 Delayed Quote.19.12%
TOKYO ELECTRIC POWER COMPANY HOLDINGS, INCORPORATED 1.32% 538 End-of-day quote.-17.48%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Markets"
05:10aEUROPE : Earnings weigh on European stocks, sterling lower before Brexit votes
RE
05:06aEUROPE : Earnings weigh on European stocks, sterling lower before Brexit votes
RE
04:56aFTSE : weakens on Reckitt slip, murky Brexit view
RE
04:52aEUROPE : European shares fall amid earnings deluge; Reckitt slides on outlook cut
RE
03:19aStocks climb on hopes for progress in trade; dollar up
RE
01:49aCanadian dollar holds near three-month high after Trudeau election win; no relief for energy stocks
RE
10/21ASIA MARKETS: Asian Markets Up On Fresh Hopes For U.S.-China 'phase-one' Trade Deal
DJ
10/21Global stocks climb on hopes for progress in trade; Canadian dollar gains
RE
10/21Trade hopes lift stocks but Boeing slumps
RE
10/21WALL STREET STOCK EXCHANGE : U.S. Stocks Climb to Start a Busy Week of Earnings
DJ
Latest news "Markets"