Oil prices drop on USA petrol level shocker

by Frankie Norman December 8, 2017, 1:33
Oil prices drop on USA petrol level shocker

"There is a general theme of selling back things that have recently been outperforming, tech being the obvious one.so if you are looking across the asset spectrum and looking to sell things that have done well, then oil fits into that category".

"But a weaker economic performance and a decline in refinery capacity utilization in the first quarter could be a drag on oil demand and dampen prices", said Georgi Slavov, the head of research at commodity broker Marex Spectron. That followed an OECD warning the previous week of red lights flashing on some economic gauges.

China is the second-largest economy in the world behind the USA and data published late on Tuesday by the American Petroleum Institute on gasoline inventories suggested "no one travelled on Thanksgiving", Flynn said.

Futures price for WTI crude oil for January in electronic trading on the NY Mercantile exchange (NYMEX) has increased by this time to $0,19 (0,34%) to $56,15 per barrel.

Meanwhile, gasoline inventories in the USA rose sharply for the week of 6.78 million barrels, while experts expected increase of 2.7 million barrels. West Texas Intermediate, the USA benchmark for the price of oil, was down 1.1 per cent to $56.95 per barrel.

Last week, OPEC and its non-OPEC partners agreed to extend the deal through the end of 2018, but the team included a review clause that would take place in June.

"In the supply and demand picture for oil, there hasn't been much change".

"Demand remains firm, which is the main reason for us to still see oil at/above $60 per barrel". The surprise data hit prices of both crude and products in a market that was tilted bullish and vulnerable to a selloff, analysts said.

"Short covering in the market, together with the threat of a strike by Nigeria's key oil union, has provided some support to oil prices in today's session", said Abhishek Kumar, senior energy analyst at Interfax Energy's Global Gas Analytics in London.

Elsewhere, Middle East tension rose as President Donald Trump breaks with decades of USA foreign policy, saying he's directing the State Department to begin preparations to move the U.S. Embassy in Israel from Tel Aviv to Jerusalem.

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