Oil falls on expectations of swelling U.S. crude stockpiles

Jacqueline Melliek, Bloomberg

Publishing

Tuesday, October 29, 2019 3:02 PM CDT

In the world's largest economy, oil fell for two days as a sign of swelling oil stocks.

New York futures fell 0.5{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5}. Data provider Genscape Inc. said Monday that oil supply to major Oklahoma storage hubs last week rose 1.5 million barrels last week, reviving concerns about sluggish demand and sufficient inventories.

Bob Yawger, director of futures at Mizuho Securities in New York, said, “The Genscape thread across the industry will build up Cushing as we liven up the market. ”He said.

Since the end of April, oil prices have fallen 16{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} as trade wars have intensified due to demand and booming US production. Meanwhile, according to research notes from Citigroup Global Markets Inc., partnerships with Russia and Saudi Arabia are drifting.

Saudi Arabia may have to consider deeper cuts with the United States. Kuwait was written by Citigroup analysts, including Ed Morse and Eric Lee, when Russia was absent.

“We will have to wait until we get closer to the next OPEC + meeting to know the land instead of relying on preemptive headlines,” said Michael Loewen, director of product strategy at Scottiabank in Toronto.

West Texas Intermediate for December delivery fell 27 cents to $ 55.54 a barrel on the New York Mercantile Exchange. Brent oil for a compromise in December rose 2 cents to close at $ 61.59 on the London-based ICE futures European exchange. Worldwide benchmark crude oil had a $ 6.05 premium to WTI.

According to data provider Genscape, crude oil inventories at Cushing's main hub in Oklahoma increased 1.5 million barrels last week. If confirmed by government figures on Wednesday, it will rise for four consecutive weeks in the US hub.

Jay Hatfield, CEO of InfraCap in New York, said, “We are still only a month, so I think it makes sense to be a bit ahead of us. "Weak oil is normal in October."