Oil Price Drops after Weekly Report Show Higher Supply of Distillates

The EIA report also showed U.S. crude oil exports fell by 271,000 barrels a day last week, to 1.5 million barrels a day.

Mr. Navy said Thursday’s report on U.S. oil inventories wasn’t the only factor in oil’s decline, noting overall global demand is also becoming more of a concern. “There are more clouds as far as economies go, and the tariff disputes are also a factor.”

West Texas Intermediate graph

Alfonso Esparza at foreign-exchange trading group Oanda echoed Mr. Navy’s concerns regarding tariffs.

“The threat of a new round of tariffs on Chinese goods looms over the market,” Mr. Esparza said. “The Trump administration has toughened its stance on Chinese goods, with a $200 billion round of tariffs waiting in the wings. China is expected to retaliate escalating the trade war between the two economies and dragging down global growth forecasts.”

via WSJ

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza