Investing.com - Financial Markets Worldwide
Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Oil prices dip on economic concerns, demand worries

Published 2016-07-04, 08:40 p/m
© Reuters. Oil prices dip on economic concerns, demand worries
JPM
-
BARC
-
LCO
-
CL
-

By Henning Gloystein
SINGAPORE, July 5 (Reuters) - Crude prices dipped in early
trading on Tuesday, with Brent falling back below $50 per barrel
as economic concerns took centre stage with many analysts saying
oil demand will stall later this year.
International benchmark Brent crude oil futures LCOc1 were
trading at $49.95 per barrel at 0030 GMT, down 15 cents from
their last settlement. U.S. West Texas Intermediate (WTI) crude
futures were down 39 cents at $48.60 a barrel.
Analysts said that concerns over the global economy were
weighing on the outlook for oil demand and on prices.
"The deterioration in the global economic outlook, financial
market uncertainty and ripple effects on key areas of oil demand
growth are likely to exacerbate already-lacklustre industrial
demand growth trends," British bank Barclays (LON:BARC) said in a note to
clients.
JPMorgan (NYSE:JPM) also said in its latest oil market outlook that
"macro-economic risks may weigh on oil prices", although the
U.S. bank added that oil prices would still likely rise between
this year and the next as stocks are drawn down, and political
risk and maturing oil fields tighten the market.
JPMorgan said it expected Brent and WTI to average $47.30
and $46.66 per barrel respectively this year and $56.75 a barrel
for both in 2017. That's an increase of $2 each for 2016 and
$1.75 a barrel for both benchmarks for 2017, compared with the
bank's previous forecast.
In the latest sign of a glut in refined products, which
traders say will reduce orders for crude oil, which is the most
important refining feedstock, several tankers carrying
gasoline-making components have dropped anchor off New York
harbour, unable to discharge as onshore tanks are full.
(Editing by Joseph Radford)

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.