Home Tools Market News U.S. crude oil remains below $40 as oversupply still weighs

U.S. crude oil remains below $40 as oversupply still weighs

August 03, 2016 at 03:12 am GMT

U.S. crude oil remains below $40 as oversupply still weighs

SINGAPORE (Reuters) - Oil prices edged up early on Wednesday, supported by a weaker dollar, but U.S. crude futures remained below $40 per barrel and Brent was below $42 as ongoing fuel oversupply and stuttering economic growth weighed on markets.

U.S. West Texas Intermediate (WTI) crude futures (CLc1) were trading at $39.63 per barrel at 0027 GMT, up 12 cents from their last settlement but still below the $40 marker it settled below for the first time since April during the previous session.

International Brent crude futures (LCOc1) were trading at $41.85 per barrel, up a mere 5 cents from their last close, and failing to retake and maintain $42.

Analysts said a weaker U.S. dollar, which has shed 2.5 percent in value against a basket of other leading currencies (DXY) since July highs, was lending oil markets some support by making fuel imports cheaper for countries using other currencies, potentially stoking demand.

"Risks for oil remain skewed to the downside in 2H16. Supply disruptions and risk appetite were supportive Apr-Jun, but fundamental headwinds are growing, which outnumber any recent positives," said Adam Longson of Morgan Stanley (NYSE:MS) in an outlook to clients.

The U.S. bank said the global economic outlook was also weak, potentially hitting fuel demand. "We expect global growth to move below consensus estimates," Morgan Stanley said.

Oil markets have been dogged by oversupply that started in the crude sector more than two years ago and which has since spread to refined products, leaving storage tanks filled to the brink, and unsold fuel stored on ships.

Risk Warning: Forex trading carries a high level of risk to your capital and losses may exceed deposits. You should only speculate with funds that you can afford to lose. Formax do not provide investment advice relating to investments or potential transactions in investments and our products may not be suitable for all investors. Formax is permitted to provide factual market information and information about transaction procedures. Any subsequent decision to enter into any transactions with Formax must be yours. Please ensure that you fully understand the risks involved and seek independent advice if necessary.

Legal:Formax Prime Capital (UK) Limited is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. Formax Prime Capital (UK) Limited’s reference number is 624225

Registered Office:107 Cheapside, London, EC2V 6DN Registered in England and Wales, Company reference number 08891879.

Copyright © 2017 Formax Prime Capital (UK) Limited. All rights reserved. www.formaxmarket.co.uk is owned and operated by Formax Prime Capital (UK) Ltd.

Our website uses cookies to help you enjoy the best experience possible. By continuing to browse this website, you are giving your consent for cookies to be used. For more details, please read our Cookies Policy.

CLOSE
web对话
live chat