May 9, 2024

Oil Prices Slump as Inventories Grow

Signs of easing supply concerns drove oil prices lower Tuesday, with U.S. stockpile data on tap. European benchmark Brent crude futures fell 17 cents to $83.16 a barrel while the U.S. standard West Texas Intermediate (WTI) crude futures eased 10 cents to $78.38. Prices fell further following data from the American Petroleum Institute showed a jump in U.S. crude and fuel inventories the previous week, defying analysts' expectations alongside forecasts of a decrease in demand.

StoneX analyst Alex Hodes was quoted in a recent Reuters article, telling his clients, "Global inventories remain in a building phase and has accelerated recently.”

According to StoneX analysis, global inventory data puts crude oil and petroleum barrel supplies at 1.1 million barrels per day above forecasts. Official data from the U.S. Energy Information Administration (EIA) was due at 10:30 a.m. ET on Wednesday. The previous day, the EIA revised upward its forecasts for this year's world oil and liquid fuels output and lowered demand expectations, indicating a well-stocked market.

Last week, Brent and WTI suffered their largest weekly losses in three months as weak U.S. jobs numbers failed to curb hopes for near term interest rate cuts.

Oil prices previously received a boost on Tuesday after a U.S. government solicitation to purchase more than 3 million barrels of oil for the Strategic Petroleum Reserve (SPR). Oil traders seem to be increasingly looking past escalating tensions in the Middle East where mediators worked on securing a ceasefire agreement.

Make market insights your competitive advantage.

Access live prices, supply and demand data and market commentary across commodities, equities, currencies and more. Sign up for StoneX Market Intelligence today and receive a free 14-day trial.

Access Now

To read the original article, click here.

See why StoneX is a partner of choice

Have questions about our products or services? We're ready to help.
Start a conversation
See why StoneX is a partner of choice
StoneX: We open markets

Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.

  • Partnership icon
    Globality

    With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.

  • Price tag
    Transparency

    As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.

  • PC Monitor Blue
    Expertise

    From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.

+
!

By submitting this form, you are sending StoneX Group Inc. and its subsidiaries your personal information to be used for marketing purposes. View our  Privacy notice  to learn more.
+
!

By submitting this form, you are sending StoneX Group Inc. and its subsidiaries your personal information to be used for marketing purposes. View our  Privacy notice  to learn more.

© 2024 StoneX Group Inc. all rights reserved.

The subsidiaries of StoneX Group Inc. provide financial products and services, including, but not limited to, physical commodities, securities, clearing, global payments, risk management, asset management, foreign exchange, and exchange-traded and over-the-counter derivatives. These financial products and services are offered in accordance with the applicable laws in the jurisdictions in which they are provided and are subject to specific terms, conditions, and restrictions contained in the terms of business applicable to each such offering. Not all products and services are available in all countries. The products and services offered by the StoneX Group of companies involve risk of loss and may not be suitable for all investors. Full Disclaimer.

This website is not intended for residents of any particular country, and the information herein is not advice nor a recommendation to trade nor does it constitute an offer or solicitation to buy or sell any financial product or service, by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Please refer to the Regulatory Disclosure section for entity-specific disclosures.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc. The information herein is provided for informational purposes only. This information is provided on an ‘as-is’ basis and may contain statements and opinions of the StoneX Group of companies as well as excerpts and/or information from public sources and third parties and no warranty, whether express or implied, is given as to its completeness or accuracy. Each company within the StoneX Group of companies (on its own behalf and on behalf of its directors, employees and agents) disclaims any and all liability as well as any third-party claim that may arise from the accuracy and/or completeness of the information detailed herein, as well as the use of or reliance on this information by the recipient, any member of its group or any third party.