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As on: Feb 24, 2019 11:08 AM
Energy Preview: Crude Falls As IEA Sees Rising Supplies
14-Sep-18   09:25 Hrs IST

Crude oil futures tumbled more than 2% yesterday after a slide from near two month highs extended as the International Energy Agency or the IEA said that the global supplies hit a record of 100 million barrels a day. It also said that daily crude-oil output in the Organization of the Petroleum Exporting Countries climbed in August by 420,000 barrels a day, to average 32.63 million a day. MCX Crude also fell sharply, breaking under Rs 5000 per barrel and approaching around Rs 4900 mark.

IEA noted that as far as oil demand is concerned, following an increase of 1.4 mb/d in 2018, growth next year will be 1.5 mb/d. Even so, in 2018, we are seeing signs of weaker demand in some markets: gasoline demand is stagnant in the US as prices rise; European demand in the period May-July was consistently below year-ago levels; demand in Japan is sluggish notwithstanding very high temperatures and will be further impacted by the recent natural disasters.

The US Energy Information Administration (EIA) reported Wednesday a significant draw of US crude oil inventories during last week. According to the Weekly Petroleum Status Report by EIA, US commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve (SPR), decreased by 5.3 million barrels during the week ending September 7th 2018.

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