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Oil Prices Fall on Record High U.S. Crude Production

Published 17/01/2019, 05:00 pm
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Investing.com - Oil prices fell on Thursday in Asia after the U.S. Energy Information Administration (EIA) reported that American crude oil production reached a record 11.9 million bpd in the week ending Jan. 11, up from 11.7 million bpd last week.

Crude Oil WTI Futures were down 0.7% at $51.97 per barrel by 12:48 AM ET (05:48 GMT).

International Brent Oil Futures slid 0.6% at $60.99 per barrel.

The EIA also reported that gasoline inventories rose by 7.5 million barrels, compared to expectations for a build of 2.77 million barrels, while distillate stockpiles increased by 2.97 million barrels, compared to forecasts for a gain of 1.57 million.

Meanwhile, a separate EIA Short-Term Energy Outlook reiterated expectations for a record high of more than 12 million bpd in U.S. productions this year and possibly around 13 million bpd by 2020.

Slowing global economic growth was also cited as a headwind for oil prices recently after China reported weaker-than-expected export and PMI data earlier this month.

Data on Wednesday also showed Japan’s core machinery orders in November dropped sharply, adding to concerns that the impact of the U.S.-China trade dispute has begun to spread to the global economy.

The economic outlook was darkened further this week after British lawmakers on Wednesday rejected Prime Minister Theresa May's deal to leave the European Union.

If nothing is approved by March 29, Britain would make a “no-deal” departure from the bloc, which could pose dire economic risks.

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