Comprehensive  Ghana Oil and Gas news, information, updates, analysis


News in Brief

Oil prices dip on ongoing oversupply, economic headwinds

poil ghaOil prices held near two-month lows on Monday amid worries that a global crude and refined product glut would weigh on markets for some time to come.


International Brent crude oil futures were trading at $45.51 per barrel at 0623 GMT, down 18 cents from their previous close. U.S. West Texas Intermediate (WTI) crude was at $44.03, down 16 cents a barrel.

Both benchmarks were close to two-month lows reached last week.

Traders said that ongoing oversupply and growing economic headwinds were weighing on oil.

“Global oil demand in Q3 16 is growing at less than one-third the rate it was in Q3 15, weighed down by anemic economic growth,” Barclays said on Monday.

“Demand support from the OECD has faded, while growth from China and India has slowed,” the British bank said.

Morgan Stanley said headwinds were growing for the second half of the year, leading to an expectation of lower oil prices. It pointed to resilient U.S. supply, falling demand for transport fuels, and oversupply by refiners, particularly in gasoline.

“As a result, crude oil demand from refineries is underperforming product demand by a wide margin,” the U.S. bank said, adding that growing economic risks added further to downside risks for oil.

A strong dollar and a fourth weekly rise in the U.S. oil rig count also weighed on prices, traders said.

Money managers cut their net long U.S. crude futures and options positions, which would profit from rising prices, to a four-month low in the week to July 19, the U.S. Commodity Futures Trading Commission said on Friday.

Libya’s hopes to boost crude exports have been dealt a blow after the head of the National Oil Corporation (NOC) objected to a deal between the government and local guards to reopen key ports.


Source: Reuters

Profile photo of Editor
Follow Us

Editor

Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
Profile photo of Editor
Follow Us

Latest posts by Editor (see all)

Share this article

Leave a reply

Personality of the Month
  • Prof. Thomas Mba Akabzaa Chief Director of Ministry of Petroleum          …
Follow Us Online
Join the Discussions

Summary: Revenue mobilization from the oil sector for Agricultural production in Ghana, a myth or reality?

Agriculture, once considered the backbone of Ghana’s economy recorded a reduction of its contribution to GDP from 45% in 1992…

Responses Add your response


About Us
Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes (www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
Events Calendar
<< Aug 2017 >>
MTWTFSS
31 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3
Twitter Activity Stream
 

Partners We are proud to be associated with:

Skip to toolbar