Oil prices decline amid supply concerns

20 November 2019 (Last Updated November 20th, 2019 12:22)

Oil prices have slipped as a surge in US crude inventories emphasised worries on weak global economic growth.

Oil prices have slipped as a surge in US crude inventories emphasised worries on weak global economic growth.

Brent crude futures were down $0.20 at $60.71 a barrel, while West Texas Intermediate (WTI) crude futures slipped $0.6 at $55.15 a barrel, reported Reuters.

According to data released by the American Petroleum Institute (API), US crude inventories increased six million barrels to 445.9 million, in the week that ended on 15 November 2019.

The surge added to more concerns on supply after Reuters reported that Russia was unlikely to support deepening output cuts when the Organization of the Petroleum Exporting Countries (OPEC+) alliance is expected to meet in December 2019 in Vienna. Investors are awaiting the US Government inventory data to be released by the Energy Information Administration.

OANDA analyst Edward Moya was quoted by Reuters as saying: “The API data also showed US inventories posted a rather robust increase last week, which if confirmed by the EIA report, we could see oil prices continue to slide.”

Meanwhile, China also condemned legislation passed by the US Senate which is aimed at protecting human rights in Hong Kong amid a crackdown on a pro-democracy protest movement, as dozens of protesters stranded in a university campus.

AxiTrader market strategist Stephen Innes said: “(The) fear here is still the trade talk with a lot of pessimism starting to filter through.

“If we don’t get a significant roll-back on tariffs, that’s quite negative.”

In October 2019, Japan’s exports fell at their quickest pace in three years, while imports declined 1.3%.