Oil drops as global economic concerns grip market

Crude Oil

Oil prices have been on the rise since the US Treasury announced the seizure of $7 billion in assets of Venezuela's state oil firm PDVSA and its US subsidiary Citgo last week.

Crude futures fell earlier after an industry report suggested a larger rise in crude inventories, while concerns about the impact on global supplies of US sanctions on Venezuela faded. The government's official supply report is due out later on Wednesday.

The Energy Information Administration (EIA) wind of the Department of Energy (DoE) released an increase of 1.3 million barrels into the crude stocks than market consensus of 2.18 million barrels.

US West Texas Intermediate (WTI) crude futures were at $53.82 per barrel at 0607 GMT, down 19 cents, or 0.4 per cent, from their last settlement.

Earlier, oil price came under pressure following weekly data showing rise in USA stocks.

According to EIA, U.S. crude oil refinery inputs averaged 16.6 million barrels per day last week, which was 170,000 barrels more than the previous week's average.

"The price has yet to react in any noticeable way", Fritsch said of the sanctions. The cartel and the world's biggest exporter, Saudi Arabia, slashed its output more than expected under the OPEC deal, to 10.2 million barrels a day in January and is aiming to pump around 100,000 barrels less in February.

A decline in OPEC production and a squeeze on supply from Iran and Venezuela from US sanctions have led many analysts to forecast that the market will be balanced in 2019.

"Supply fundamentals have increasingly been turning supportive in recent weeks, but against this the market still worries about the yet-to-be-realized - if at all - impact on demand from weaker macroeconomic fundamentals", said Ole Hansen, head of commodity strategy at Saxo Bank. US crude was down 48 cents at $53.18.

Expectations of reduced supplies following a December accord by OPEC, and non-OPEC nations like Russian Federation, to reduce output by 1.2 million barrels per day is expected to contribute to support the market.

US inventories of winter fuels, including propane, shrank by about 4.9 million barrels combined last week, EIA data showed Wednesday. Oil fell on Tuesday after a survey showed euro zone business expansion almost stalled in January. The kingdom pumped 10.643 million bpd in December. USA crude output stayed at a record-high 11.9 million barrels a day.

With a nervous market, traders are focused on the U.S. State of the Union address by President Donald Trump.

Related News:



Most liked

Star Sports Live Streaming India vs New Zealand First T20I
Watch the second Twenty20 global between New Zealand and India from 5.55am, Friday on Sky Sports Cricket and Main Event. From 77/6, it took a 31-ball 39 from MS Dhoni to accord a sense of respectability to the Indian total.

Washington Wizards' $235 million injury nightmare, John Wall
Washington Wizards guard John Wall looks on from the bench prior to the game against the Indiana Pacers at Capital One Arena. The five-time All-Star was wearing a boot on his left foot and using a scooter to get around.

Ariana Grande Reportedly Cancels Grammys Gig After Producers "Insulted" Her
One new report claims that Ariana Grande and the team behind the awards show had a disagreement over her song choices. Gaga is also nominated in the best pop solo performance category for Joanne (Where Do You Think You're Goin'?).

Facebook Messenger gives users option to delete sent messages
For up to 10 minutes after a message is sent, users will soon have the option to delete that message from the conversation. In it, the social media giant notes you can now remove any message that you've previously typed from a text.

76ers acquire Tobias Harris, Boban Marjanovic in major trade with Clippers
According to O'Connor, that's not yet a done deal as there is some dispute over the protections of that draft pick. The Clippers re-stocked the roster with pieces for the future.

Nantes demand Cardiff make full £15m Emiliano Sala payment
Bordeaux , Sala's previous team, are thought to be due 50% of the transfer fee as per the terms of the deal which had taken him to Nantes .

Children with a mental illness deserve access to the new hospital
Any parent anxious about their child's mental health and who needs help or support can call the NSPCC helpline on 0808 800 5000. This school has its own dog - really.

Oscars 2019: Lady Gaga, Bradley Cooper to perform 'Shallow' at the ceremony
When asked about his Oscars performance with Gaga, Cooper said, "I'm sure I'll be terrified". If you're counting, that's four out of the five nominees for best original song.

Australia vs Sri Lanka
Sri Lanka's lack of quality, however, will be a factor in how selectors assess that form with competition for places now strong. He was later cleared of injury and discharged on Saturday night, though it's unclear if he will be fit to play out the game.

This Anthem Controversy Is Not What You'd Expect
Several artists, such as Rihanna and Cardi B, reportedly declined to perform at this year's Super Bowl . However, even with her lengthy powerhouse notes, the singer's performance was set at 1:49.

Potential Liverpool Line-Up Versus West Ham As Fan Favourite Returns
Add to that, the injuries to Samir Nasri and Marko Arnautovic, which have stacked the odds against them even more. Liverpool can create breathing space by gunning for, and achieving, a fantastic four against West Ham again.

Sarri urges his players to support this superstar more
We moved the ball very fast, very well, there was a good movement without the ball'. "Sometimes we missed the moment of a shot or a pass".

Microsoft Expanding Xbox Live To Nintendo Switch, iOS, And Android
It also offered Xbox Live achievements on its Windows Phone platforms, but this capability was limited to a handful of games. This plays right into Microsoft's SaaS playbook, create a service, expand it to new platforms, and then grow its user base.

Here’s How & Where to Watch Sunday’s Super Bowl LIII Telecast Online
If you are more phone person or prefer online stream, visit the Animal Planet website or download one of its mobile applications. Is there a livestream of the Puppy Bowl? This year there is a huge variety of dogs, and 93 dogs will be up for adoption.

Nigeria vice president, flight crew safe after plane crash lands
He also posted a picture of the helicopter, whose propeller was damaged and was lying on its side. TUKO.co.ke understands this was the second time the VP narrowly survived a helicopter crash.