Crude Oil Hit by Global Weakness, API Shows 695k Barrel Weekly Decline (USO) (OIL) (UCO)
Tweet
Share
E-mail
Weakening data out of China contributed to a 2 percent selloff in United States Oil Fund LP ETF (NYSE: USO) and WTI crude oil futures on Tuesday, as the global market for oil appears to remain well supplied due to weakening demand.
API data late on Tuesday showed oil inventories in the U.S. declined by 695k barrels last week. The release comes ahead of EIA inventory data tomorrow, which is expected to show a decrease of 1.38 million barrels last week, according to a Bloomberg survey.
However, the U.S. Energy Information Administration on Tuesday cut its 2012 world oil demand growth forecast by 130,000 barrels per day to 670,000 bpd, citing expectations for slower global economic growth. The EIA said global oil and liquids demand growth was likely to be slower than previously expected due to less optimistic forecasts for global economic growth, which were lowered by 0.1 percent in 2012 and 0.6 percent in 2013 versus a month earlier.
United States Oil Fund LP ETF (NYSE: USO) closed at 31.52 continuing a 5 day downward trend. WTI trades near $84 per barrel and Brent futures trade just under $98 per barrel in after-hours trading on Tuesday.
API data late on Tuesday showed oil inventories in the U.S. declined by 695k barrels last week. The release comes ahead of EIA inventory data tomorrow, which is expected to show a decrease of 1.38 million barrels last week, according to a Bloomberg survey.
However, the U.S. Energy Information Administration on Tuesday cut its 2012 world oil demand growth forecast by 130,000 barrels per day to 670,000 bpd, citing expectations for slower global economic growth. The EIA said global oil and liquids demand growth was likely to be slower than previously expected due to less optimistic forecasts for global economic growth, which were lowered by 0.1 percent in 2012 and 0.6 percent in 2013 versus a month earlier.
United States Oil Fund LP ETF (NYSE: USO) closed at 31.52 continuing a 5 day downward trend. WTI trades near $84 per barrel and Brent futures trade just under $98 per barrel in after-hours trading on Tuesday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Iran’s president calls for end to war with US
- U.S. refiners boost crude oil intake to highest level since 2019
- European stocks gain, but inflation worries drive weekly decline
Create E-mail Alert Related Categories
Commodities, ETFsRelated Entities
Oil Inventories, Crude OilSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
