Investing.com – Backlogged supply adds to worrying demand for crude oil. .
WASHINGTON (Reuters) – West Texas Intermediate (NYSE: WTI) fell about 2 percent last week after concerns were raised that oil stockpiles could rise in the US due to the shutdown of the oil refinery at the Illinois oil refinery.
Brent oil fell 1% per barrel because trade talks between the United States and China failed to find an immediate solution.
At Phillips 66 (NYSE: Wood River refinery), which operates 330,000 barrels a day, the second largest crude distillation unit was struck by fire on Sunday.
Scott Shelton, ICAP (LON 🙂 energy gift broker, is also the WTI's storage hub, Okuring. I listened to the problem at Phillips 66, Ponca City 76,000 bpd Oklahoma refinery handling crude in Cushing.
Weekly spare parts recovery data, which weighs on US crude oil price forecasts, rose 7 units since June 15.
"The perfect storm of bearish information about the WTI," Shelton said.
The US dollar was down 51 cents to $ 51.84 a barrel on the New York Mercantile Exchange. Despite the intermittent adjustment to the April peak of $ 55.75, the steepest weekly decline since the start of this year has been a 4.6 percent drop from last week.
Fell 61 cents, or 1 percent, to $ 61.49 a barrel. The share plunged 1.29 percent to $ 63.63 a share, after hitting a record high in 2019.
Following the cuts in Saudi Arabia and Russia – led OPEC + 10 groups, crude oil prices have fallen to one – stop – forward – step – back mode during the first two weeks of the year and several stops after Christmas.
On Friday, West Texas crude jumped 16 percent, the biggest increase in January, after rising nearly 19 percent last month.
However, unilateral trade oil bulls disappeared in mid-January, with gradual ups and sharp falls more severe than one day.
Venezuela 's power struggle and the stalemate of the US – China trade war have stranded the rebound and the worries of the global economy, the slump in shale production, and the abundance of crude barrels trapped in the sea have disappeared from the market this year.
In Venezuela, the challenge for Nicolas Maduro, the leader of opposition leader Juan Guaido, was taken to a slow-motion crisis without immediate solution. Maduro Control PDVSA The petroleum company's sanctions imposed by the Trump Administration have so far limited the impact on oil prices.
In China, Donald Trump announced that he did not want to meet Xi Jinping just before the deadline of March 1 last week, from 10% to 25% on Chinese imports worth $ 200 billion It is expected to increase.
But a new round of talks began in Beijing led by US Trade Representative Jeffrey Gerrish, and high-level talks by US Trade Representative Robert Lighthizer and US Trade Representative Steven Mnuchin Expiration is due this weekend.
However, in the context of US negotiators demanding a long time in China, including indemnification for the alleged theft of US intellectual property, hopes for a quick solution are not so good.