Oil Has Recently Moved in Tandem with Equity Prices

Oil Has Recently Moved in Tandem with Equity Prices

Oil Has Recently Moved in Tandem with Equity Prices

Vessel-tracking and port data suggest Asian imports of USA crude were equivalent to about 560,000 barrels per day (bpd) in February, down sharply from 676,190 bpd in January.

For 2019, the EIA forecast US crude production increase of 570,000 bpd to 11.27 million bpd.

Oil dropped for the first time in four sessions on a reported expansion in us crude inventories and the risk of an intensifying global trade war sparked by President Donald Trump.

Asian imports of 726,600 bpd of US crude in November and January's 676,190 bpd were the strongest two months on record, showing that the region's traders were quick to take advantage of the weakening of WTI relative to Brent.

The West Texas Intermediate for April delivery decreased 1.45 USA dollars to settle at 61.15 dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery lost 1.45 dollars to close at 64.34 dollars a barrel on the London ICE Futures Exchange.

A voice for Wall Street in the White House, Cohn's move to resign came after he lost a fight over Trump's plans for hefty steel and aluminium import tariffs.

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German Economy Minister Brigitte Zypries said: "I hope Trump changes his mind ..." "He is a rare talent, and I thank him for his dedicated service".

Brent futures were last down 85 U.S. cents on the day at US$64.94 a barrel by 1005 GMT, while USA crude futures were down 69 United States cents at US$61.91 a barrel. The API reported a draw of 4.536 million in gasoline stockpiles, compared to a 1.201-million-barrel draw that analysts had expected.

Oil fell on Thursday, following a sharp rise in the dollar, steering prices towards a second consecutive weekly fall against a backdrop of rising USA crude production and inventories.

"The rising oil-production profile in the USA remains the predominant bearish factor affecting prices", said Abhishek Kumar, senior energy analyst at Interfax Energy's Global Gas Analytics in London.

Technically, crude oil prices gave a breakdown below the neckline level of the head and shoulder pattern on the hourly chart on Thursday. The increase, however, almost matched market expectations and came in at less than half the increase reported by trade group the American Petroleum Institute on Tuesday. Imports of crude dropped by more than 20% to a rate of 8.2-million barrels a day (bpd) from 9.4-million bpd in January.

The spread between the two benchmarks blew out to $7.07 a barrel in late September in the aftermath of Hurricane Harvey, which knocked out refineries along the U.S. Gulf Coast, cutting demand for WTI crudes. The resurgence in US production is the most prominent change since the group's last forecast. USA output is expected to surpass that of Russian Federation, now the world's top producer at about 11 million barrels a day.

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