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Oil Prices Drop Amid Rising Crude Stockpile, Weak China GDP Growth

Published 10/18/2019, 12:43 AM
Updated 10/18/2019, 12:53 AM
© Reuters.

© Reuters.

Investing.com - Oil prices dropped on Friday in Asia after Energy Information Administration (EIA) reported that U.S. oil inventories rose much more than the market was expecting, while weak China GDP growth also weighed.

U.S. Crude Oil WTI Futures lost 0.2% to $53.81 by 12:42 AM ET (04:42 GMT). International Brent Oil Futures fell 0.6% to $59.57.

Crude stockpiles jumped 9.3 million barrels last week, the EIA said. That compared to analysts’ expectations for a rise of about 2.9 million barrels, according to forecasts compiled by Investing.com.

But Gasoline inventories fell by 2.56 million barrels, versus expectations for a drawdown of about 1.21 million barrels. Distillate inventories fell by 3.8 million barrels, with analysts predicting a decline of about 2.4 million barrels.

In the third quarter, China's economic growth slowed to 6% year-on-year, the National Bureau of Statistics reported on Friday.

Crude demand growth tends to closely follow economic growth.

"Concerns about softer growth in the demand for oil and doubts about OPEC's ability to rebalance the market on the current production cut rate will be key drags on prices in the near term," ANZ Research said in a note.

Latest comments

Whoever wrote this report is not giving us the right information. This is my personal opinion. .. . How can it be said that the crude Oil price dropped as a result of increased stockpile. In fact the crude oil price soared as a result of the higher stockpile. . . I am sure of the fact because I was monitoring the prices. I was trading it. . . The expectation was  that the price will drop with the increased stockpile. But the price did not drop, even at the time of the economic release. . . It later retraced a little about 45 minutes after the release and then soared high up. It was only in the Asian session that it retraced a little before resuming the upward trend this morning.. . In order to avoid controversies in the future , always support your supported your assertions with charts so everybody can see... . Thank you.
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