Oil Prices - August 28
Posted: Wed Aug 28, 2024 6:40 pm
Trading Economics:
WTI crude oil futures fell by 1.3% to settle at $74.50 per barrel on Wednesday, extending a 2.4% decline from the previous session, impacted by a smaller-than-expected draw in U.S. crude stockpiles and ongoing concerns over Chinese demand. < U.S. and OECD Petroleum Inventories are way below normal for this time of year.
Major banks have revised their price forecasts downward, citing economic challenges in key markets like China and a shift to electric vehicles, which are dampening fuel consumption. < Gasoline demand in the U.S. is up year-over-year. Gasoline and diesel inventories are below normal.
In Europe, diesel demand is projected to dip below pre-pandemic levels due to sluggish manufacturing and changes in the vehicle fleet. < OECD Petroluem inventories are below normal and they keep falling.
These bearish factors are exerting downward pressure on prices, though supply risks in the Middle East and Libya are preventing further losses.
The latest EIA report showed a modest decrease of 0.846 million barrels in U.S. crude inventories last week, falling short of the anticipated 3 million barrel draw, contributing to the mixed sentiment in the oil market.
In my opinion, the only thing that justifies oil prices under $75/bbl is FEAR of a global recession (not a real demand decline) and those in control wanting lower oil prices, which will keep inflation low and allow the Fed to lower interest rates. MAYBE this is driven by the Wall Street Gang wanting the Fed to lower interest rates.
WTI crude oil futures fell by 1.3% to settle at $74.50 per barrel on Wednesday, extending a 2.4% decline from the previous session, impacted by a smaller-than-expected draw in U.S. crude stockpiles and ongoing concerns over Chinese demand. < U.S. and OECD Petroleum Inventories are way below normal for this time of year.
Major banks have revised their price forecasts downward, citing economic challenges in key markets like China and a shift to electric vehicles, which are dampening fuel consumption. < Gasoline demand in the U.S. is up year-over-year. Gasoline and diesel inventories are below normal.
In Europe, diesel demand is projected to dip below pre-pandemic levels due to sluggish manufacturing and changes in the vehicle fleet. < OECD Petroluem inventories are below normal and they keep falling.
These bearish factors are exerting downward pressure on prices, though supply risks in the Middle East and Libya are preventing further losses.
The latest EIA report showed a modest decrease of 0.846 million barrels in U.S. crude inventories last week, falling short of the anticipated 3 million barrel draw, contributing to the mixed sentiment in the oil market.
In my opinion, the only thing that justifies oil prices under $75/bbl is FEAR of a global recession (not a real demand decline) and those in control wanting lower oil prices, which will keep inflation low and allow the Fed to lower interest rates. MAYBE this is driven by the Wall Street Gang wanting the Fed to lower interest rates.