Crude Oil prices continue to display weakness on the back of falling global equities markets, tightening lending norms in China, Japan’s debt rating in jeopardy & strengthening US Dollar. Markets still remain concerned over the demand scenario in the US, the world’s largest energy consumer.
In the last week oil prices dropped despite a decline in inventories as data indicates that refineries operated at 78.4% of capacity last week. In the week prior to that, gasoline inventories climbed to the highest level since March 2008 and fuel consumption in the past four weeks is down 1.8% from a year earlier. The energy market still remains oversupplied and prices may remain under pressure. There is a major concern as China is expected to continue to tighten its monetary policy over the next six months. The move by China to limit credit and raise reserve requirements for banks could lead to downside pressure as China is the world’s second-largest energy consumer.
Full Story: Crude oil weak on falling equities, demand concerns - Commodity Online
In the last week oil prices dropped despite a decline in inventories as data indicates that refineries operated at 78.4% of capacity last week. In the week prior to that, gasoline inventories climbed to the highest level since March 2008 and fuel consumption in the past four weeks is down 1.8% from a year earlier. The energy market still remains oversupplied and prices may remain under pressure. There is a major concern as China is expected to continue to tighten its monetary policy over the next six months. The move by China to limit credit and raise reserve requirements for banks could lead to downside pressure as China is the world’s second-largest energy consumer.
Full Story: Crude oil weak on falling equities, demand concerns - Commodity Online
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