Latest Technology and Financial News

Search Stocks

Crude Oil Inventory Offer Crude Oil Prices to Fall Further

Dec 11,2014  Market News  Comment: 0

Report A Spam
Facebook Twitter Google LinkedIn StumbleUpon Pinterest Email
Report A Spam

Article(20)
Comments(0)

New York City, New York – (StockNewsDesk) – 12/11/2014 — Yet again crude oil became a primary reason for the correction in global markets and this time the U.S. markets were not spared. The U.S. markets fell after the policymakers reported the crude oil inventories figures. These figures prompted the crude oil prices to fall in excess of 4%, taking the crude oil prices to $61 a barrel. The stance taken by Organization of Petrol Exporting Countries (OPEC) of not reducing the supply of crude oil also ticked off the crude oil price over 5-year lows.

The major indices of the U.S market, S&P 500, the Down Jones and the Nasdaq, all fell over 1% as reports released by the U.S. policymakers hinted towards the fact that crude oil prices might not increase anytime soon.

 

Increase in U.S. Crude Oil Inventory

As per the report, crude oil inventories in the U.S. market increased well above expectations to 1.5 million barrels. The Street expected a negative growth of 2.5 million barrels. Inventory coming above expectations by such as huge margin points towards a slowing demand and excess supply of crude oil, which ultimately will trigger a further fall in crude oil prices. On an aggregate basis, U.S. crude oil inventories stood at 380.8 million. In addition to this, gasoline report which shows the gasoline consumption by people, also came in well above expectations. Total motor gasoline inventories increased by 8.2 million barrels. This was nearly three times the expectations of 2.6 million barrels. Inventory for distillate stockpiles increased by 5.6 million barrels.

Crude Oil Inventory Offer Crude Oil Prices to Fall Further

Disappointing OPEC Estimates

According to a report released by the OPEC countries, aggregate crude production declined by 390,000 barrels a day to 30.05 million barrels for the month of November. Libya saw a maximum reduction in the crude oil production. The country cut its production by nearly 248,300 barrels a day totalling to 638,000. Crude oil production for the largest crude oil producer of the world, Saudi Arabia, declined by 60,100 barrels a day, taking the figure of production to 9.59 million barrels a day. On the other hand, Kuwait saw a decline of 59,400 barrels a day to 2.69 million barrels a day.

OPEC countries declined their forecast to 28.9 million barrels a day from earlier estimation of 29.4 million barrels. This fuelled investor concerns over gradual stagnation of global growth. However, at the same time, OPEC countries also affirmed its output target of 30 million barrels a day in reply to boom of U.S. shale business. The U.S shale business has grown at its fastest pace in three decades. Hence, OPEC countries, with a fear of losing market share, decided not to lower the production on a global scale.

Related posts

Share your views and Comment below

Connect with:

Search Stocks

Search Articles

LG’s Android G Watch burs…

posted on July 9, 2014 , by Prabir Sinha

Amazon Intensifies Battle…

posted on July 10, 2014 , by James Smith

Deutsche Bank Weakness Ac…

posted on July 11, 2014 , by James Smith

Citigroup Can Deduct $3 B…

posted on July 16, 2014 , by David Goehst

Apple, IBM form Strategic…

posted on July 17, 2014 , by David Goehst

Recent Comments
  • User AvatarCharlesetta Chipman { Would love to perpetually get updated outstanding weblog ! . } – Feb 25, 3:25 PM
  • User AvatarChanda Hinnant { magnificent issues altogether, you simply won a new reader. What could you recommend about your post that you just made a few days ago? Any... } – Feb 25, 1:17 PM
  • User AvatarLenny Strawther { Outstanding post, you have pointed out some superb points, I likewise conceive this is a very good website. } – Feb 25, 12:31 PM
  • User AvatarJennette Lysaght { I have been absent for a while, but now I remember why I used to love this website. Thanks, I will try and check back... } – Feb 25, 11:41 AM
  • User AvatarWilhemina Strube { I just couldn't go away your web site before suggesting that I really enjoyed the standard info a person provide to your guests? Is going... } – Feb 25, 10:30 AM
  • User AvatarGoogle { GREAT POST.THIS IS A GREAT NEWS. } – Feb 24, 7:22 PM
  • Crude Oil Inventory

    Login

    Connect with:

    Register | Lost your password?