Oil Futures Extend Losses on Supply-Demand Concerns
0921 ET – Oil futures are lower for a third straight session as the recent geopolitical boost recedes and focus is back on supply and demand. Ritterbusch sees 'nothing significantly bearish' about yesterday's EIA report of U.S. crude and product inventory builds, 'especially when the non-representative West Coast region was excluded.' What is bearish for oil is the monthly production increase of more than 400,000 barrels a day from OPEC+, which 'will become even more negative once the boost in OPEC supply becomes more transparent,' the firm adds. WTI and Brent are both down 1.3% at $60.75 and $64.05 a barrel, respectively. (anthony.harrup@wsj.com)
0754 GMT – Oil prices extend losses after a surprise build in U.S. crude stockpiles fueled demand concerns. In early trade, Brent crude and WTI are both down 1.6% to $63.89 and $60.59 a barrel, respectively. 'The inventory build suggests weaker demand or stronger-than-expected production, contrasting with many analysts' forecasts that anticipated a stock drawdown due to rising springtime consumption,' Antonio Di Giacomo, analyst at XS.com, says. Meanwhile, OPEC+ members are discussing the possibility of making another large output hike in July, although no final agreement has been reached yet, according to a Bloomberg report. A substantial production increase could exacerbate concerns of an oversupplied market, particularly as uncertainties surrounding trade talks and the broader economic outlook continue to cloud sentiment. (giulia.petroni@wsj.com)
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