Crude slips on fuel piling up in US, fiscal outlook

Thursday, 22. August 2019 07:50

Prices of the most widely watched contracts for the shipment of oil decreased on Thursday to two-day lows with continued concern about the apparent readiness by United States President Donald Trump to escalate the trade war with China and strain federal finances. Furthermore, the weekly report by the Department of Energy revealed a small but surprising increase, by 300,000 barrels, in gasoline inventories and a 2.6-million-barrel jump in distillates. The accompanying drop in crude, by 2.7 million barrels, was also worse than in the previous estimate by the American Petroleum Institute.

The Congressional Budget Office warned that a recent budget deal would get the deficit to $1 trillion for the 2020 fiscal year compared to the previous projection of $892 billion. The prediction for the economic output was lowered by 0.3% at the same time. The overhaul translates to $1.5 trillion plus interest to public debt over the next decade and it may top $29 trillion or 95% of gross domestic product, the body added.

West Texas Intermediate for delivery in October retreated 0.4% to $55.46 per barrel at 7:39 am CET. Brent for settlement also in the said month traded 0.45% lower at $60.03, struggling to hold above $60 per barrel.

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Breaking the News / IT