• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 26 mins Dutch Populists Shock the EU with Election Victory
  • 4 hours One Last Warning For The U.S. Shale Patch
  • 4 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 13 hours Climate change's fingerprints are on U.S. Midwest floods
  • 55 mins U.S.-China Trade War Poses Biggest Risk To Global Stability
  • 1 day Oil Slips Further From 2019 Highs On Trade Worries
  • 1 min Read: OPEC THREATENED TO KILL US SHALE
  • 24 hours Telsa Sales in Europe
  • 10 hours Modular Nuclear Reactors
  • 21 hours The Political Debacle: Brexit delayed
  • 37 mins European Parliament demands Nord-Stream-ii pipeline to be Stopped
  • 2 days Poll: Will Renewables Save the World?

Bearish Sentiment Grips Oil Markets

Refinery

Crude prices have fallen roughly $10 per barrel in the past three weeks, with a 4 percent drop across regional markets this week alone. WTI ended the week at $66 per barrel, whilst Brent slid to $76 per barrel by Friday. The overall market sentiment is increasingly bearish, with Wall Street’s worst week since 2011 sending ripples through European and Asian stock markets. Global trade is also slowing down, with freight rates decreasing after an extensive period of growth.

OPEC has started sending mixed signals, too, with Saudi Energy Minister forecasting that the global oil market would shift to oversupply in Q4 2018 amid high stockpile rates. It seems that OPEC+ is comfortable with a $75-85 per barrel price corridor and will cut short its production ramp-up as soon as necessary.

1. US Oil Stocks Soaring Higher Still Amid Some Product Relief

(Click to enlarge)

- US commercial stocks soared again last week for the fifth consecutive week, as inventories rose w-o-w by a further 6.3 MMbbl.
- In total, commercial stocks have risen to 422 million barrels – not including the US strategic reserve stock which currently comprises 656 million barrels of oil.
- The stock buildup against reasonably stable crude export numbers is a relatively risky development as looming pipeline bottlenecks might obstruct the free flow of exports even further.
- After last week’s 1.8 mbpd median, crude exports bounced back to 2.1 mbpd,…




Oilprice - The No. 1 Source for Oil & Energy News