Friday, November 13, 2015

US oil drops 2%, set for a weekly loss

FXStreet (Mumbai) - Oil prices in the US fell more than 2% are on track for the biggest weekly loss in more than two months as supply glut became more pronounced this week.

WTI futures now trade 2% lower around USD 40.85/barrel. Brent futures are relatively resilient, but still down 0.6% around USD 44.88/barrel.

The oil glut situation worsened this week after the OPEC saw no change in the demand growth forecast, while the IEA revised its demand forecasts lower from the 5-year high. Meanwhile, the US Energy Information Administration (EIA) reported a rise in the US inventory levels last week.

Furthermore, the concerns that demand side will fall short caught fire after the data released earlier this week showed signs of a slowdown in the two biggest economies in Asia – Japan and China.
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