WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Crude Oil Prices Face Weekly Decline as Glut Fears Presist

Posted by Chris Advincula on Jul 22, 2016 6:56:40 AM


(July 22 Reuters) Crude futures were on track for weekly losses on Friday as investors reassessed U.S. data on oil stocks and excesses in oil products in Europe and Asia.

While many expect global oversupply of oil to ease in the near term, huge amounts of crude remain in vessels at sea and storage tanks on land as the rebalancing takes longer than some had anticipated.

"The narrative of a balanced oil market (in the second half of 2016) has so far been an illusion, " UBS oil analyst Giovanni Staunovo said.

"Supply might actually increase in the near term with the further return of disrupted production and higher Middle East production, while demand growth is set to slow in emerging Asia."

Brent crude briefly fell to a more than two-month low of less than $46 per barrel before rebounding to $46.30 as of 0926 GMT, 10 cents higher. The contract closed 2.1 percent lower in the previous session, and is on track for a decline of more than 2.5 percent for the week.

U.S. West Texas Intermediate traded as low as $44.25 a barrel before bouncing back to $44.74, one cent blow the previous close. It ended Thursday down 2.2 percent and is on track to close the week also more than 2.5 percent lower.

Click on the link below to see the full story from Reuters: (by Libby George)

Crude oil prices face weekly decline as glut fears persist





Topics: commodities, European Session, crude oil, West Texas Intermediate crude oil, Brent


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!