Breaking News
0

Crude Oil Prices - Weekly Outlook: August 20 - 24

CommoditiesAug 19, 2018 07:01AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Oil prices suffer seventh weekly loss in a row

Investing.com - Oil traders will stay focused on a host of bearish factors currently affecting the crude market in the week ahead, after prices suffered yet another weekly loss last week.

U.S. WTI crude posted its seventh straight weekly drop on Friday, marking its worst losing streak in three years, falling 2.5%.

Brent, the global benchmark, meanwhile suffered its sixth week of declines in seven, sliding 1.3%.

Worries that oversupply would weigh on the U.S. market and that a trade dispute between the United Stated and China would slow economic growth and hurt demand for oil have been at the forefront recently.

Traders said the demand outlook for oil was also dimming due to economic trouble in Turkey potentially spreading across emerging markets.

Reports of faster supply increases from major global producers are also putting downward pressure on the market after the Organization of the Petroleum Exporting Countries (OPEC) and other oil producers led by Russia agreed in June to ease production curbs to make up for lost supplies out of Libya, Venezuela and Iran.

The deal effectively increases combined oil output by 1 million barrels per day (bpd).

In another worrying sign, U.S. energy companies have started to ramp up production in recent weeks, pointing to indications of U.S. output growth.

The U.S. rig count, an early indicator of future output, was unchanged at 869 last week, the highest level since March 2015, according to oilfield services firm Baker Hughes.

Despite these worries, the market will likely draw support from the introduction of U.S. sanctions against Iran, which from November will include oil exports.

The sanctions are being reinstated after U.S. President Donald Trump pulled out of the Iran nuclear deal earlier this year.

Iran's output was the lowest since April last year at 3.75 million bpd, with buyers in Japan, South Korea and India already dialing back orders.

Ahead of the coming week, Investing.com has compiled a list of the main events likely to affect the oil market.

Fresh weekly data on U.S. commercial crude inventories on Tuesday and Wednesday to gauge the strength of demand in the world’s largest oil consumer will capture the market's attention.

Market players will also focus on weekly rig count data for further signals on how fast U.S. output levels will continue to rise.

Tuesday, August 21

The American Petroleum Institute is to publish its weekly update on U.S. oil supplies.

Wednesday, August 22

The U.S. Energy Information Administration will release its weekly report on oil stockpiles.

Friday, August 24

Baker Hughes will release weekly data on the U.S. oil rig count.

Crude Oil Prices - Weekly Outlook: August 20 - 24
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Maurice Jones
Maurice Jones Aug 19, 2018 8:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Prices suffer?
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email