Oil Drops as Trade War, Rising Stockpiles Shadow Outlook
Oil held near a three-week low after falling more than 2% on Tuesday on signs that the trade war is hurting economic growth, and as an industry group flagged a build in U.S. stockpiles.
West Texas Intermediate traded near $60 a barrel, after falling in the first two sessions of the week, while Brent closed below $65. Data due Wednesday could confirm slowing U.S. economic growth, after figures showed consumer confidence slumped to a nearly five-year low.
The nation’s commercial crude stocks rose by nearly 4 million barrels last week, according to an estimate from the American Petroleum Institute, which also saw a modest increase in holdings at the key storage hub in Cushing, Oklahoma.
Crude is on track for a sharp monthly loss as U.S. President Donald Trump’s sweeping trade levies, including on top importer China, have dulled the outlook for energy demand. At the same time, OPEC+ has been easing production curbs, with JPMorgan Chase & Co. warned that the cartel could choose to accelerate planned supply increases at a meeting next week.
WTI for June delivery fell 0.3% to $60.25 a barrel at 7:32 a.m. in Singapore.
Brent for June delivery settled down 2.4% at $64.25 a barrel.
Source: Bloomberg
