Share

Oil prices slip on US data

London - Global oil prices slid on Wednesday as investors fretted over weaker-than-expected economic growth data and the latest snapshot of crude inventories in top consumer the United States.

Brent North Sea crude for delivery in August dipped 27 cents to stand at $100.99 a barrel in London late afternoon deals.

New York's main contract, West Texas Intermediate light sweet crude for August, shed 58c at $94.75 a barrel.

The oil market fell after the Commerce Department slashed its estimate for growth in the January-March period to just 1.8%, compared to the previous estimate of 2.4%.

"Crude oil turned lower ... as demand concerns came back to the forefront following the release of some disappointing economic data," said analyst Fawad Razaqzada at traders GFT Markets.

"Consumer spending and business investment were both weaker than initially thought, while exports - previously reported to have grown - had actually dropped 1.1% on the quarter."

Crude futures also fell back after the US Energy Information Administration announced that American oil reserves were flat at 394.1 million barrels in the week ending June 21.

Market expectations had been for a drop of 1.7 million barrels, according to analysts polled by Dow Jones Newswires.

The EIA added that gasoline or petrol stockpiles surged by 3.7 million barrels.

That outstripped expectations for a gain of just 660 000 barrels and indicated weaker-than-expected demand.

"The inventories data underscores a growing feeling among analysts that demand remains just too weak to rationalise a barrel of Brent crude above $100 and WTI $95, especially as there is also ample, and rising, supply of oil in North America," added Razaqzada.

Gasoline or petrol demand is normally expected to surge in the summer season, when Americans take to the roads for their holidays.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
-0.3%
Rand - Pound
23.97
-0.3%
Rand - Euro
20.48
-0.1%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.4%
Platinum
907.94
+1.2%
Palladium
1,014.30
+1.3%
Gold
2,215.39
+0.9%
Silver
24.91
+1.1%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders