Oil Fell After The International Energy Agency Report

Crude oil prices traded in the red zone on Wednesday, as investors digested the monthly report of the International Energy Agency, which reported a drop in demand growth forecasts for 2019. According to the International Energy Agency.

Oil demand was adjusted down to 1.3 million barrels per day. day. The worse-than-expected industrial output data from China also weighed on oil values.

At the same time, market observers learned yesterday that the American Petroleum Institute announced a sudden rise in US stocks last week of 8.6 million barrels, which also reduced the incentives for investment in the oil market. Meanwhile, the Energy Information Administration (EIA) will release its crude inventories report later today.

The International Energy Agency (IEA) cuts oil demand forecasts for 2019 to 1.3 million barrels a day

The International Energy Agency (IEA) said in its monthly report on Wednesday it had lowered its forecast for oil demand growth for 2019 to 1.3 million bpd. Most growth forecasts are due to lower demand in major oil consuming countries such as China, Brazil, and Japan. Continued trade tensions between the United States and China, as well as unrest in the Middle East, also had a negative impact on demand for oil, the report said.

According to the agency, demand growth was adjusted last year down to 1.2 million barrels per day. The drop in demand figures from Egypt, India, Indonesia, and Nigeria had the most significant impact on downward revision.

US Petroleum Institute: increase in oil inventories 8.6 million barrels... The increase in gasoline stocks 567 thousand barrels

The US Petroleum Institute announced that oil inventories in the United States rose 8.6 million barrels during the week ending May 10, while analysts forecast a decline of three million barrels. Gasoline inventories rose 567,000 barrels last week, while distillate stocks - including heating oil and diesel - rose 2.2 million barrels. The official reading - which investors are watching closely - is expected Wednesday to be released by the Energy Information Administration.

Oil contracts

• West Texas Intermediate prices fell for delivery in June by 0.86%, trading at 61.23 dollars a barrel at 10:28 am CET.
• While the Brent index for July fell 0.46% to hit 70.94 dollars a barrel at 10:29 am CET.