ZCZC
BCN-19
US-ENERGY-OIL-PRICE
Oil prices drop amid demand worries
NEW YORK, July 19, 2019 (BSS/Xinhua) – Oil prices finished with significant
losses on Thursday, pressured by fears of waning fuel demand.
The West Texas Intermediate for August delivery fell 1.48 U.S. dollars to
settle at 55.30 dollars a barrel on the New York Mercantile Exchange, while
Brent crude for September delivery dropped 1.73 dollars to close at 61.93
dollars a barrel on the London ICE Futures Exchange.
“The renewed downturn was triggered by the U.S. inventory data, a steep
rise in oil product stocks weighing on prices,” Commerzbank analyst Carsten
Fritsch said in a note.
According to the Weekly Petroleum Status Report released by the U.S. Energy
Information Administration on Wednesday, total motor gasoline inventories
increased by 3.6 million barrels and distillate fuel inventories increased by
5.7 million barrels in the week ending July 12.
Analysts polled by S&P Global Platts had expected a supply decline of 1.5
million barrels for gasoline and an increase of 300,000 barrels for
distillates.
“The gasoline inventory build in particular is unusual at this time of year
given that the summer driving season normally entails increased consumption
of gasoline. That said, U.S. gasoline demand was unusually weak at 9.2
million barrels per day in the reporting week,” Fritsch noted.
Market participants also paid close attention to the ongoing U.S.-Iran
tensions, which may put the flow of oil in the Middle East at risk.
BSS/XINHUA/HR/1202