Demand is Worried to Fall, Oil Prices Sluggish to US $ 70.5 per Barrel


Oil prices fell for the second time on Wednesday (17/5), after an unexpected increase in inventories crude oil It was the US that fueled demand worries. This followed weaker-than-expected economic data from United States of America and China, the world’s two largest oil consumers.

Brent oil futures contract fell 29 cents, or 0.4 percent, to US $ 74.6 per barrel. US West Texas Intermediate (WTI) crude was down 32 cents, or also 0.4 percent, at US$70.55 a barrel by 0005 GMT.

US crude oil stockpiles rose by about 3.6 million barrels in the week ended May 12, according to market sources citing data from the American Petroleum Institute.

Seven analysts polled by Reuters had forecast a 900,000 barrel drop in inventories.

That added to concerns about US growth after data showed retail sales rose 0.4 percent in April, below expectations for an increase of 0.8 percent.

“The global economic outlook remains a lot of question marks and that doesn’t give energy traders the confidence to buy crude. There is currently too much oil available,” Edward Moya, senior market analyst at OANDA, said in a note.

The meeting on increasing the US debt limit continues to weigh on the market. The US Department of the Treasury predicts that the United States will face a catastrophic bankruptcy starting June 1 if parliament does not increase the debt limit.

In China, growth in April industrial output and retail sales came in below forecast, suggesting that the economy lost momentum early in the second quarter.

Markets are closely following new steps in expanding sanctions against Russia by the leaders of the Group of Seven (G7) when they meet in Japan on May 19-21.

[Gambas:Video CNN]



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