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Crude oil sinks as total U.S. stockpiles of oil and fuel hit seven-month high

Published 08/08/2018, 01:14 PM
© Reuters.  Crude oil sinks as total U.S. stockpiles of oil and fuel hit seven-month high
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  • Crude oil prices plunge to their lowest levels in six weeks after total U.S. stockpiles of oil and fuel rose to a seven-month high and U.S.-China trade relations continue to deteriorate; U.S. WTI -3.7% at $66.56/bbl, Brent -3.6% at $71.93/bbl.
  • According to the Energy Information Administration, U.S. crude oil inventories alone fell slightly last week but total commercial stockpiles of crude oil and most fuels including gasoline and diesel rose by 3.3M barrels to 1.2M barrels, its highest since early January.
  • “There is room for [prices in] the crude market to soften a bit more,” says John Woods of JJ Woods Associates, adding that inventories could rise further as refineries head toward maintenance season after the summer driving season.
  • “Gasoline demand has been one of the main bullish stories in the oil market and if that demand is slipping off a little bit, maybe we’re seeing reluctance to higher prices,” says Phil Flynn of Price Futures Group.
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