OIL TICKS LOWER ON RISE IN US CRUDE INVENTORIES: 18 JUNE |FOREX RECOMMENDATIONS
Oil prices turned lower on fresh oversupply concerns among investors after US Crude inventories increased to an all-time high level. This was after the government-backed EIA reported increase in US crude inventories by 1.2 million barrels for the week that ended on June 12, which came much higher than the market expectations of 157,000 barrels. The second consecutive week of rise in commercial inventories took the total count to all-time high of 539.3 million barrels.
Adding to the already bleak sentiment, OPEC presented a gloomy assessment of crude in its monthly report on late Wednesday and warned that the crude market will continue to be in surplus for the remaining part of 2020 even as demand improves. This is because the agency expects the additional supplies of about 300,000 BPD from outside the group, which is much higher than earlier predictions.
As of this moment, US WTI is trading 0.55% lower at $37.60 per barrel, while Brent crude is trading flat at $40.33 per barrel.
Talking about the previous session, crude after reaching $38.98 level, settled off-day’s high with losses of 0.44% at $37.89 per barrel. The losses were in response to the second wave of coronavirus cases in China and fresh spike of cases in US that renewed demand concerns, stalling a recovery in fuel prices.
Moreover, the recent uptick in fresh virus cases crushed the investors’ hopes of rapid economic recovery from pandemic.
Up ahead, investors will remain vigilant over headlines of coronavirus, to ascertain the market direction.
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