Oil slumps to new seven-month low

Oil slumps to new seven-month low

Oil slumps to new seven-month low

Refinery utilization rates rose by 3.4 percentage points.

Oil advanced for the first time this week after Saudi Arabia signaled it's taking steps to stabilize the market, which has been rocked by the escalating U.S.

Slowdown in global economic growth is expected to hit energy demand. Bullish factors look pretty scarce now that American stockpiles have stopped sliding and tension in the Persian Gulf seems to have receded.

It has, however, been revealed that other factors pushing the oil price down include reports that China is purchasing oil from Iran despite U.S. sanctions, making the market to lose the earlier tightness. "The big question remains will the verbal intervention be enough to stem the tide, or will oil traders use this opportunity to increase short positions". U.S. West Texas Intermediate (WTI) crude futures settled down 4.7%, at $51.09 a barrel. The contract declined 1.5 per cent on Tuesday.

Brent for October settlement added 10 cents, or 0.2 per cent, to US$59.04 a barrel on the London-based ICE Futures Europe Exchange as of 8:56am Singapore time after falling 0.6 per cent earlier.

In a report published on Wednesday, Nairametrics revealed that Nigeria's external reserves had continued to drop in recent weeks and this may largely be traceable to episodes in the global oil market.

Saudi Arabia's production target under an output-cutting deal among the Organization of the Petroleum Exporting Countries and allies - a grouping known as OPEC+ - is 10.3 million bpd.

Prices for the black gold fell early on worries about the trade war between Washington and Beijing, then extended losses after US government data showed a build of 2.4 million barrels in USA stockpiles instead of the 2.8 million draw analysts had expected. Gasoline stockpiles also climbed, an alarming development during what is typically the peak summer driving season. Additionally, U.S. sanctions on Iran and Venezuela have reduced further bets on worldwide supplies.

Oil prices plummeted on Wednesday after new data showed an unexpected build in oil, gas and distillate inventory supplies last week - and that is likely another good sign for drivers. I think that rallies at this point will continue to sell off, as we are most decidedly in a negative trend and have seen the 50 day EMA starting to drift a little bit lower, and I believe at this point will be paid great attention to as it should cause resistance.

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