Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures continued to retreat during the morning Asian trade session. Market prices are under increasing pressure as consumption is likely to slow down thanks to slowing global economic growth and an increase in supply from the large oil production countries like the United States, Russia and Saudi Arabia. Saudi Arabia is the presumed leader of OPEC.
As of 3 am GMT, the international benchmark, Brent crude for front month delivery, was down. This contract lost 22 cents or 0.3 percent to trade at $65.90 per barrel.
U.S. West Texas Intermediate (WTI) crude futures were also down. They were trading at $55.95. This was down 30 cents, or 0.5 percent from their last close.
Since the start of October, market prices have shed nearly 25 percent as supply climbs and demand is expected to slow thanks to a glum global economic outlook. Traders are worried about oversupply.
Crude Oil Traders Digest Global Economic Data
Looking at global economic data, numbers are showing economic contraction in industrial nations like Japan and Germany for the third quarter.
Supply is also rising sharply. There is a 22 percent rise in output in U.S. production in 2018. Production in the U.S. is now at a record 11.6 million barrels per day.
The American Petroleum Institute released on Wednesday that crude inventories gained 8.8 million barrels last week. They came in at 440.7 million barrels. Analysts expected an increase of 3.2 million barrels.
