x
Breaking News
0

Crude Oil Prices Settle 1% Lower as IEA Forecasts Weaker Global Oil Demand

CommoditiesOct 12, 2017 14:37
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com – Crude oil prices settled lower on Thursday as a bearish outlook on global oil demand for 2018 offset data showing U.S. crude oil stockpiles fell for the third-straight week.

On the New York Mercantile Exchange crude futures for November delivery fell by 67 cents to trade at $50.63 a barrel, while on London's Intercontinental Exchange, Brent lost 66 cents to trade at $56.28 a barrel.

Crude oil prices fell for the first time in three days as investors mulled over a mixed report from the Energy Information Administration (EIA) showing crude stockpiles fell more than expected while gasoline supplies swelled.

Inventories of U.S. crude fell by roughly 2.8m barrels in the week ended Oct. 6, handily beating expectations of a draw of 2m barrels.

Gasoline inventories, one of the products that crude is refined into, rose by roughly 2.5m barrels, confounding expectations of a draw of 480,000 barrels while distillate stockpiles fell by about 1.5m barrels, missing expectations of a decline of 2.2m barrels.

The mixed report on inventories from the EIA came ahead of a monthly update from the International Agency Energy on Thursday suggesting that global demand for oil could come under pressure next year.

Demand for Opec oil would be 32.5 million barrels per day in 2018 — around 150,000 bpd lower than the group pumped last month, The International Energy Agency said on Thursday.

In May, Opec and non-Opec members agreed to extend production cuts of 1.8m barrels per day for a period of nine months until March 2018 but rising production from the U.S., Nigeria and Libya has undermined the oil cartel’s efforts to curb excess supply.

Rising U.S. output is expected to continue to cap upside in crude oil prices, as the EIA forecast total domestic production to average 9.9 million barrels a day in 2018, the highest annual average production in U.S. history.

“It will probably be hard for a well-supplied market…to move significantly higher from here,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.

Crude Oil Prices Settle 1% Lower as IEA Forecasts Weaker Global Oil Demand
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email