SINGAPORE: US oil prices tumbled on Wednesday, continuing Tuesday’s slide after the International Energy Agency (IEA) cast doubts over the past few months’ narrative of a tightening fuel market.
US West Texas Intermediate (WTI) crude was at $55.10 per barrel, down 60 cents, or over 1 per cent.
Brent crude futures were yet to trade.
Tuesday’s and Wednesday’s falls mean that Brent is now down by almost 5 per cent since hitting 2015 highs a week ago, ending a more than 40 per cent rise between July and early November.
“Crude oil prices fell sharply after the IEA raised doubts about the outlook for 2018,” ANZ bank said on Wednesday.
The International Energy Agency (IEA) on Tuesday cut its oil demand growth forecast by 100,000 barrels per day (bpd) for this year and next, to an estimated 1.5 million bpd in 2017 and 1.3 million bpd in 2018. “Using a scenario whereby current levels of Opec production are maintained, the oil market faces a difficult challenge in 1Q18 with supply expected to exceed demand by 600,000 bpd followed by another, smaller, surplus of 200,000 bpd in 2Q18,” the agency said. — Reuters
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