The International Monetary Fund cited a broad deceleration across the world’s largest economies and it cut its growth forecast for 2019 to the lowest in a decade on Tuesday, and also lowered its projection for next year. WTI Crude is $52.98; Brent is $58.74 this morning.
Even if the U.S. and China manage to agree on a partial deal, it’s unlikely to have a significant impact on slowing economic growth as existing tariffs won’t be rolled back. The International Energy Agency last week trimmed forecasts for oil consumption for this year and 2020 amid the deteriorating economic backdrop. WTI Crude is $52.97; Brent is $58.84 this morning.
Short seller's bets that WTI Crude futures will decline have more than doubled in the last three weeks, despite positive momentum in the trade negotiations, and an array of threats to oil supply in recent months. Traders continue to fret that faltering consumption and robust U.S. crude production will lead to a global surplus next year. WTI Crude is $53.49; Brent is $59.35 this morning.
The market has been entirely too complacent given that we are one security incident away from a war, say some analysts. A tanker capable of carrying 1 million barrels of crude, was damaged on Friday near the Saudi port of Jeddah after being hit by suspected missiles, Iranian state media said. WTI Crude is $54.40; Brent is $59.85 this morning.
Despite the recent increase in supply disruptions, the EIA said Tuesday they expect downward oil price pressure to emerge in the coming months as global oil inventories rise during the first half of 2020. WTI Crude is $52.99; Brent is $58.75 this morning.
Click here to view our Offerings.