Oil Holds Losses as Economic Outlook Darkens, U.S. Supply Rises
Thursday, 24 January 2019 08:06 WIB |
Oil held losses below $53 a barrel as outlook for global economic growth darkened with signs of rising U.S. crude inventories adding to a supply glut concern.
Futures in New York were little changed after dropping 0.7 percent on Wednesday. An extended shutdown of the government could wipe out U.S. economic growth in the first quarter of 2019, according to Kevin Hassett, an economic adviser to President Donald Trump. Meanwhile, U.S. crude inventories rose 6.55 million barrels last week, the American Petroleum Institute was said to report, against expectations government data due Thursday will show a seventh drop in eight weeks.
The Energy Information Administration is forecast to report crude stockpiles in the U.S. fell 750,000 barrels last week, according to a Bloomberg survey
Oil production from the top seven U.S. shale regions is set to grow at the slowest pace since May, after prices slumped in the fourth quarter, according to the Energy Information Administration
The oil market is gradually returning to balance as OPEC reins in output and the shale boom slows, according to executives gathered at Davos
WTI for March delivery falls as much as 22c to $52.40/bbl on Nymex, trades at $52.50/bbl at 8:49am in Tokyo. Contract -39c to $52.62 on Wednesday.
March Brent fell 36c to $61.14/bbl on ICE Futures Europe exchange on Wednesday.
Source : Bloomberg