Oil prices set for second straight weekly drop on signs of growing supply surplus
USO•Brent and WTI were both on track to fall about 2.5% for the week as signs of a growing global oil surplus and softening U.S. demand weighed on prices.
1. Prices head lower
Brent settled at $95.84 a barrel, up 2 cents, while U.S. West Texas Intermediate finished at $88.56, down 18 cents. Both benchmarks were on track for a weekly decline of about 2.5%, after falling 16% and 13%, respectively, the previous week.
2. Surplus and demand concerns
The market weighed an International Energy Agency report pointing to a rise in the global oil surplus and signs of softening U.S. demand. U.S. crude and fuel inventories rose last week, driven by softer refined-products demand and higher oil imports, the Energy Information Administration said. Risks to shipments through the Strait of Hormuz remained, after Iran’s military said four tankers were hit by explosions in the waterway; the accounts could not be immediately verified.
