MTECHTIPS;-Oil buckles as concern grows over battle of OPEC vs U.S.
MTECHTIPS;-Oil buckles as concern grows over battle of OPEC vs U.S. shale
MTECHTIPS-Oil prices fell on Tuesday, rattled by concern over slowing demand, a rising U.S. dollar and increasing U.S. crude output that has shaken investors’ faith in the ability of OPEC to re balance the market. Brent futures (Loco) were down 55 cents, or 1.1 percent, at $48.79 a barrel by 12:43 p.m. EDT, while U.S. West Texas Intermediate crude (Cl) was down 53 cents, or 1.1 percent, at $45.90. So far this week, the U.S. dollar (DXY) has gained about 1 percent against a basket of currencies as it rises to its highest since April 21, pressuring greenback denominated oil. Weekly U.S. data on crude production and inventories, plus monthly reports on supply and demand from the Organization of the Petroleum Exporting Countries (OPEC) and the U.S. Energy Information Administration (EIA) this week, should provide a detailed picture of how quickly global crude inventories are falling. Analysts forecast U.S. crude stocks declined for a fifth week in a row, falling 1.8 million barrels during the week ended May 5, after hitting an all-time high over 535.5 million barrels at the end of March, according to a Reuters poll. [EIA/S] “We really need to see some of the data starting to support the idea that global inventory levels are coming down,” Saxo Bank senior manager Ole Hansen said, noting there have also been signs there has been wavering in terms of demand growth. High U.S. gasoline stocks have fed concern about demand in the United States, where consumer spending expectations hit a three-year low last month and vehicle sales have fallen year-on-year for four months in a row.
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