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Oil Prices Fall On Signs Of Slowing U.S. Demand

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Oil prices fell on Thursday, weighed down by data showing a smaller-than-expected draw on U.S. crude stockpiles and worries about the global economy. Markets appeared unmoved by the detention in Gibraltar by British Royal Marines of a supertanker possibly carrying Iranian crude oil bound for Syria, as tensions between Iran and the United States have flared over mysterious attacks on tankers in the Gulf of Oman in recent months. “Gains were capped by the Energy Information Administration (EIA) reporting a weekly decline of 1.1 million barrels in crude stocks, versus the 3 million barrels forecast by analysts and 5 million barrels reported by the API a day earlier,” Cantor Fitzgerald Europe said. “Also providing headwinds were signs of a recovery in oil exports from Venezuela in June and growth in Argentinian output in May,” it added. U.S. inventories fell less than expected as U.S. refineries last week consumed less crude than the week before and processed 2% less oil than a year ago, the EIA data showed, despite being in the midst of the summer gasoline demand season. That suggests oil demand in the United States, the world’s biggest crude consumer, could be slowing amid signs of a weakening economy. New orders for U.S. factory goods fell for a second straight month in May, government data showed on Wednesday, adding to the economic concerns.
The weak U.S. data followed a report of slow business growth in Europe last month as well. “Tossing aside the short-term nature of fluctuations around the inventory data, it’s impossible to escape the economic reality that we are in the midst of a global manufacturing downturn,” said Stephen Innes, managing partner, Vanguard Markets. The weakness in oil was offset slightly by the broader outlook for global supplies.

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Oil is powerful tool....ask OPEC.
" The American Petroleum Institute reported late Tuesday that U.S. crude supplies fell by 5 million barrels for the week ended June 28, according to sources. The API also reportedly showed stockpile declines of 387,000 barrels for gasoline and 1.7 million barrels for distillates. Inventory data from the Energy Information Administration will be released Wednesday. The EIA data are expected to show crude inventories fell by 3.7 million barrels last week, according to a survey of analysts conducted by S&P Global Platts"

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Falling oil prices is good SIGN, but it will not last...

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Insecurity in the Middle East  doesn't promise better days for oil.... with it,  (and OPEC's greed) it's hard to expect low prices... 

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Always same scenario: crude benchmark prices edge up yesterday and trading under pressure. Guess what - 4th July and U.S holiday, millions are on the roads...

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Oil rose 40 cents in one week in many states...

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