Crude Oil Price: Downward Pressure Persists on US and Brent Contracts
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Crude oil price, news and analysis:
- Libyan production of crude oil is rising, as is Russian output, and Saudi Arabia is pumping record volumes.
- That is keeping crude oil prices on a downward tack as Chinese economic growth slows.
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Supply and demand trends keep crude oil prices on the back foot
Crude oil prices continue to fall on increased supply and a likely reduction in demand as Chinese economic growth slows.
In Libya, several ports that were closed have been reopened, although output at one oilfield has been cut after two staff were kidnapped. Russia is planning to boost exports in the third quarter after the major oil producers agreed to lift production at the end of June. Oil workers are on strike in Norway and US shale output is rising to record levels.
Meanwhile, Saudi Arabia is gearing up to pump record volumes of the commodity, while China’s economy is cooling, potentially reducing demand. The ongoing US-China trade war could dampen demand too and, as a result, the price of US crude oil is dropping sharply.
US Crude Oil Price Chart, Daily Timeframe (Year to Date)
The Brent crude global benchmark is even weaker, falling Tuesday to its level for three months.
Brent Crude Oil Price Chart, Daily Timeframe (Year to Date)
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.