[NEWS] Oil falls almost 2% on weaker demand growth, rising U.S. inventories – Loganspace AI

LONDON (Reuters) – Oil prices fell almost 2% on Wednesday, weighed down by a weaker outlook for query and a upward thrust in U.S. coarse inventories no topic expectations of extended provide cuts led by OPEC.

Brent coarse futures, the realm benchmark for oil prices, were down $1.17, or 1.9%, at $61.12 a barrel by 1407 GMT. U.S. West Texas Intermediate coarse futures were down $1.13, or 2.1%, at $52.14.

The U.S. Energy Recordsdata Administration (EIA) cut its forecasts for 2019 world oil query development and U.S. coarse manufacturing on Tuesday.

A shock raise in U.S. coarse stockpiles also kept oil prices below stress.

“The outdated day’s bout of paralysis is giving means to a contemporary spin in prices as market gamers agonize over a swelling glut in U.S. oil stockpiles,” brokerage agency PVM mentioned in a price.

U.S. coarse inventories rose by 4.9 million barrels in the week ended June 7 to 482.8 million barrels, knowledge from the American Petroleum Institute (API) confirmed on Tuesday. That in contrast with analyst expectations for a decrease of 481,000 barrels.

Alternate tensions between the United States and China, the sphere’s two biggest oil shoppers, also weighed on prices. U.S. President Donald Trump mentioned he used to be conserving up a change care for China.

European shares pulled attend from three-week highs on Wednesday as this month’s recovery rally ran out of steam on the attend of soppy Chinese manufacturing facility exercise and change frictions.

Hedge fund managers are liquidating bullish oil positions at the quickest price for the reason that fourth quarter of 2018.

With the following meeting of the Group of the Petroleum Exporting Worldwide locations dwelling for the head of June, the market is having a appreciate as to whether the sphere’s predominant oil producers will delay their provide cuts.

OPEC, alongside with non-members alongside side Russia, own restricted their oil output by 1.2 million barrels per day for the reason that birth of the One year to prop up prices.

Goldman Sachs mentioned an unsure macroeconomic outlook and unstable oil manufacturing from Iran and others may per chance presumably lead OPEC to roll over provide cuts.

“The promote off in unique weeks reveals how weak the market is and it’d also simply pressure Russia’s hand in extending the deal,” mentioned Warren Patterson, head of commodities strategy at ING.

The energy minister of the United Arab Emirates, Suhail bin Mohammed al-Mazroui, mentioned on Tuesday that OPEC members were discontinuance to reaching an agreement on persevering with manufacturing cuts.

OPEC is attributable to meet on June 25 after talks with its allies led by Russia on June 26, despite the indisputable fact that sources own told Reuters that Russia has advised a date change to July 3 to 4.