Oil Prices Continue to Fall as U.S. Crude Stockpiles Rise, Broad Market Selloff
Oil prices continued to fall as higher U.S. crude stockpiles reinforced concerns about an oversupplied market, and broader financial markets retreated.
Brent traded below $65 a barrel after falling about 1% over the previous two sessions, with West Texas Intermediate nearing $61. Commercial crude inventories rose for a second week, with gauges of gasoline and distillate demand also weakening even as the U.S. summer driving season approaches.
In broader markets, concerns about Washington’s ballooning deficit drove down U.S. stocks, Treasury bonds and the dollar, with Asian equities likely to follow suit. The unrest came at a time when investor appetite for U.S. assets was already waning around the world. Crude remained under pressure as OPEC and its allies pushed back production into a market that already appeared well-supplied, with futures prices about 13% lower this year. A U.S.-led trade war has also driven losses on concerns that disruptions sweeping across the globe will slow economic growth, hurting energy demand.
Geopolitical elements remain in play, including nuclear talks between the U.S. and Iran, and reports this week that Israel is preparing to strike Tehran. Also, investors are tracking a long-term effort to end the war in Ukraine. Both could change sanctions policy and affect global balances.
Brent for July settlement was down 0.5% at $64.61 a barrel at 8:24 a.m. in Singapore.
WTI for July delivery was down 0.5% at $61.28 a barrel.
Source: Bloomberg
