• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 33 mins Joe Biden's Presidency
  • 21 mins The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 5 hours Biden's National Security Director vows to release report on Khashoggi murder. Is it time to add to Brent futures long position ?
  • 1 hour The Debate Starts : Remake Republican Party vs. Third Party
  • 26 mins Rejoining Paris Climate Accord is Devestating
  • 2 mins Biden suspends oil and gas drilling on Federal Lands for 60 days for review.
  • 8 hours A Message from President Donald J. Trump - 5 minutes from The White House directly
  • 12 hours An exciting development in EV Aviation: Volocopter
  • 18 mins GENERAL NORMAN SCHWARZKOPF: The Third Tour
  • 13 mins CIA Death Squads
  • 12 hours JACK MA versus Xi Jinping
  • 1 day Did I Miss Something?
  • 1 day Investments worthy in versatile and clean natural gas
China Is Struggling To Keep Up With Electricity Demand

China Is Struggling To Keep Up With Electricity Demand

China’s economy has soared in…

Will Argentina’s Vaca Muerta Shale Play Ever Recover?

Will Argentina’s Vaca Muerta Shale Play Ever Recover?

The COVID-19 pandemic has wreaked…

Oil Majors Win Big As LNG Prices Soar

Oil Majors Win Big As LNG Prices Soar

Spiking natural gas prices in…

Editorial Dept

Editorial Dept

More Info

Premium Content

Can Oil Markets Withstand Recession Fears?

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading nearly flat for the week as fears of recession are leading to increasing worries over future demand. An unexpected build in American Petroleum Institute (API) and U.S. Energy Information Administration (EIA) weekly inventories is also pressuring prices. We’re also feeling the impact of disappointing economic reports in China and Europe on Wednesday.

Limiting the downside risk is better-than-expected U.S. retail sales data and expectations of OPEC production cuts.

Recession Fears

Recession fears were raised earlier in the week after the bond market flashed a troubling signal about the U.S. economy. This increased worries over lower future demand. The fears were triggered when the yield on the benchmark 10-year Treasury note briefly broke below the two year rate, “an odd bond market phenomenon that has been a reliable indicator of economic recessions,” according to CNBC.

A recession occurred, on average, 22 months after the inversion, Credit Suisse research showed. Nonetheless, investors are bailing out of higher risk assets like crude and seeking shelter in Treasurys and Japanese Yen.

EIA Reports Surprise Inventories Build

On Wednesday, the government reported that U.S. crude stocks grew by 1.6 million barrels the week-ending August 9, compared with analyst expectations for a decrease of 2.8 million barrels, as refineries cut output,…





Leave a comment

Leave a comment




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