• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 hour Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 days Wind droughts
  • 22 hours Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 7 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 5 hours ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 5 days Oil Prices Fall After Fed Raises Rates
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 13 days "Russian oil executive and Putin critic Ravil Maganov dead after mysterious six-story fall" - The New York Post
  • 3 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 10 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 13 days The Federal Reserve and Money...Aspects which are not widely known
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Growing Fear Of Global Economic Slowdown Caps Oil Price Gains

Oil prices nudged up early on Friday, supported by weekly U.S. reports of inventory draws and simmering tensions in the Middle East, while worsening outlooks on the global economy capped price gains.

At 05:26 a.m. EDT on Friday, WTI Crude was up 0.46 percent at $56.28 and Brent Crude was trading up 0.30 percent at $63.45, with prices on course to post a weekly gain this trading week.  

The Iran-West tensions in the Middle East and a call from none other than the world’s top crude oil exporter, Saudi Arabia, on countries buying oil to secure the free navigation of tankers in the Strait of Hormuz lent support to prices. The bullish factors this week also included the EIA reporting a stunning inventory draw of 10.8 million barrels in U.S. crude oil inventories in the week to July 19, confirming the estimate of the American Petroleum Institute (API) which had reported a day earlier a draw of over 10 million barrels, continuing a string of weekly declines.  

According to estimates from ING, U.S. crude oil inventories have declined by around 40 million barrels over the past one and half months. The current inventory surplus over the five-year average has narrowed down from 38 million barrels in June 2019 to 15 million barrels currently, ING says.

Despite the huge U.S. inventory draws and the continued unresolved tensions in the Middle East, oil price gains were constrained by continued concern over the health of the global economy going forward.

According to Reuters polls of more than 500 economists carried out between July 1 and 24, experts worry that the U.S.-China trade war will impact global economic growth more than previously expected, despite clear signals from many major central banks, including the Fed, that they would cut rates and ease monetary policies. More than 70 percent of 250 economists polled by Reuters now say a deeper global economic downturn is more likely, compared to around 50 percent in a similar poll in April.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News