- Crude oil prices turn sharply lower on expectations that upcoming data will show a third straight weekly increase in U.S. crude oil inventories and after the IMF cut its global economic growth forecasts; U.S. WTI -2.3% at $73.22/bbl, Brent -1.9% at $83.41/bbl.
- Rising U.S. inventories, combined with indications of increasing oil production in Libya and elsewhere, suggests markets have become too concerned about the impact on declining exports from Iran and Venezuela, JBC Energy analysts say.
- “Let’s worry about upside risks to supply for a change,” JBC says. “The market may be far more able to absorb additional supply disruptions than many currently still assume, bringing with it a pronounced downside risk to outright prices.”
- Meanwhile, traders are watching Hurricane Michael, which has cut Gulf of Mexico oil production by 40%, or 671K bbl/day, as producers evacuate workers on oil platforms as a safety precaution.
- ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, ERYY, ERGF, OILD, OILU, USAI
- Now read: Oil Headed For 0 - Nothing's Gonna Stop Me Now
Original article