Oil stockpiles fell again last week, along with gasoline and distillate inventories, data from the American Petroleum Institute industry group showed on Tuesday. The outlook for another draw in U.S. crude inventories plus renewed outages in Libya are supporting oil prices, say experts. WTI Crude is $58.45; Brent is $65.13 this morning.
Fears of a demand slump were overdone, and the market is now taking a more realistic approach. The current outlook for oil isn’t so bad, with tightness likely to persist for the rest of the third quarter. WTI Crude is $57.41; Brent is $64.33 this morning.
Fragile economic growth caused by the protectionist U.S. trade policy is having a profound impact on oil demand and oil-demand growth. WTI Crude is $56.16; Brent is $63.20 this morning.
Industry analysts believe that the market for crude should continue to tighten in the back half of the year (see page 2 of the article for price forecasts thru 2022.) Demand will remain stronger than currently priced in as various global coordinated monetary and fiscal maneuvers will be implemented to support economic growth. WTI Crude is $56.42; Brent is $63.73 this morning.
Oil turned higher after Mexico’s state-run oil company said crude output fell about 10% in the second quarter, adding to tensions after Iran reportedly tested a medium-range ballistic missile in the Persia Gulf region.
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