Oil slides 2%, dollar off seven-week high

2018-10-10 18:59:19 GMT (Economies.com)
Oil slides 2%, dollar off seven-week high

Oil futures fell nearly two percent in American trade away from from August 20 highs, following earlier data from the US, the world's largest energy consumer. 


As of 05:45 GMT, US crude futures due in November fell 1.99% to $73.47 a barrel, while Brent December futures fell 1.73% to $83.53 a barrel, as the dollar index shed 0.24% to 95.44. 


US Inflation Data 


Earlier US data showed producer prices rose 0.2% as expected in September, compared to a 0.1% dip in August, while core prices rose 0.2% as well, matching estimates. . 


The final reading for wholesale inventories showed a 1% increase, compared to the preliminary reading's 0.8%, and adding to July's 0.6% increase. 


Otherwise, the Energy Information Administration cut its forecasts for global oil demand growth by 60 thousand bpd to 1.52 million bpd in 2018, while expecting growth to speed up to 20 thousand bpd in 2019. 


Oil prices are up 20% so far this year as OPEC and Russia carry on their agreement to cut global output to easy a previous supply glut, while the US withdrew from the Iran deal and sanctioned their oil exports.


US Oil Rig Count 


Baker Hughes, a US oil services company, reported a drop of two rigs in the oil rig count to a total of 863 rigs, the third weekly increase in a row. .


US output has recently risen to the second highest in the globe, taking the place of Saudi Arabia while Russia continues at the top with 11.21 million bpd. 

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