Crude Oil Drops As EIA Forecast Triggers | Commodities
(RTTNews) – Crude oil costs fell on Wednesday after the forecast by the Paris-based International Energy Agency projected oversupply within the market this 12 months on account of surging provide from OPEC+ and non-OPEC+ oil producers.
Today, WTI Crude Oil for September supply was final seen down by $0.55 (or 0.87%) at $62.62 per barrel.
Data launched by the American Petroleum Institute revealed that US crude oil inventories rose by 1.5 million barrels in the week ending August 8.
A separate report launched by the Energy Information Administration at this time confirmed that US crude oil inventories rose by 3.037 million barrels within the week ending August 8.
Gasoline inventories fell by 0.792 million barrels, whereas distillate fuel inventories elevated by 714,000 barrels. Net US crude imports rose by 699,000 barrels per day.
The construct brings business stockpiles to 426.7 million barrels.
Supply aspect considerations linger because the US President Trump has intensified strain on international locations buying oil from Russia. Trump’s plans have an effect on primarily India and China.
Slapped with 50% tariffs, to keep away from additional US battle, India is reportedly now trying to increase reliance on West Asian suppliers as a means to diversify its vitality sources.
A US-Russia summit in Alaska on Friday may affect potential easing of US sanctions on Russian oil.
Meanwhile, in its month-to-month Oil Market Report, the International Energy Agency said that the oil market might be more oversupplied than anticipated by the tip of this 12 months amid bland demand growth versus surging provide from each OPEC+ and non-OPEC+ producers.
Demand is now anticipated to rise by simply 680,000 barrels per day this 12 months and by 700,000 bpd in 2026 to succeed in 104.4 million bpd subsequent 12 months.
On the provision entrance, the Paris-based company hiked its world provide growth forecast by 370,000 bpd to 2.5 million bpd in 2025 after the eight OPEC+ members agreed earlier in August to spice up output by 547,000 bpd in September.
In the US, primarily based on the inflation knowledge launched at this time and final week’s weak jobs quantity, markets are betting closely on an rate of interest cut by the US Fed in September.
Analysts really feel that Fed’s determination within the coming weeks may influence the worth of US Dollar in addition to oil costs, as crude oil is a dollar-denominated commodity.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
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