Brent crude dropped to the lowest level in almost 17 months, narrowing its premium over West Texas Intermediate, on concern global supply growth will outpace demand.
The European benchmark settled below $100 for the first time since April 2013. World petroleum supply will increase by 1.6 million barrels a day this year while consumption will rise by 1 million, the Energy Information Administration forecast today. WTI narrowed its discount after Platts said Tallgrass Energy Partners LP may delay the Pony Express pipeline from Wyoming to Cushing, Oklahoma, to November.
“The very fundamental view right now is that demand is falling and supply is still pretty fat,” said Stephen Schork, president of the Schork Group Inc. in Villanova, Pennsylvania. “There is really nothing to lean on in this market to help support it.”
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015