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Black Gold Continues Downtrend Action as Supplies Rise Nearly Double Expectations

“* Reuters poll shows increase in U.S. crude stockpiles

* Central Banks could start tightening monetary policy

* OPEC trims 2013 world oil demand growth forecast

* Weaker Chinese economy continues to weigh on oil

By Peg Mackey

LONDON, June 11 (Reuters) – Brent crude tumbled below $102 per barrel on Tuesday after the United States nearly doubled the estimate of its shale oil and investors worried that central banks, following Japan, could rein in their loose monetary policy.

World share fell and yields on riskier European debt rose after the Bank of Japan’s decision not to follow up its $1.4 trillion stimulus programme announced in April.

U.S. oil production has soared as new drilling techniques have unlocked shale deposits countrywide. The Energy Information Administration now estimates such shale oil reserves at 58 billion barrels, up from 32 billion in 2011.

“With the global economy continuing to grow at a snail’s pace, the likelihood of a significant growth spurt in oil consumption in the short to even medium term is highly unlikely,” said Dominick Chirichella of Energy Management Institute.

Brent crude was off $1.79 to $102.16 a barrel by 1345 GMT, having sunk to $101.82 in earlier trade. U.S. oil shed $1.33 to $94.44.

Increasing oil supplies and waning demand in China, the world’s number two oil consumer, are likely to hold down prices.

Data from China showed a slowdown in the economy of the world’s biggest energy consumer, with May exports weak and domestic activity struggling to pick up.

Implied oil demand rose in May at its lowest annual rate since September 2012, Reuters calculations show….”

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