12 June, 2019
Crude Oil turned sharply lower to 52.34 in the Asian session on Wednesday weighed down by weaker oil demand outlook and a rise in U.S. crude inventories despite growing expectations of ongoing OPEC-led supply cuts. The U.S. Energy Information Administration cut its forecasts for 2019 world oil demand growth and U.S. crude oil production in a monthly report released on Tuesday. The EIA lowered its 2019 world oil demand growth forecast by 160,000 barrels per day to 1.22 million bpd and wound back its forecast for 2019 U.S. crude production to 12.32 million bpd, 140,000 bpd less than the May forecast. A surprise increase in U.S. crude stockpiles also kept oil prices under pressure. U.S. crude inventories rose by 4.9 million barrels in the week ended June 7 to 482.8 million barrels, according to data from the American Petroleum Institute on Tuesday. That compared with analysts' expectations for a decrease of 481,000 barrels. With the next meeting of the Organization of the Petroleum Exporting Countries set for the end of June, the market is eyeing whether the world's major oil producers will prolong their supply cuts.