Today’s Energy Minute brought to you by Commissioner Ryan Sitton of the Texas Railroad Commission:
Between slowing economies, reduced demand, growing stockpiles and a stock market sell-off, oil prices continue to get pushed down.
Over the past few weeks, U.S. crude inventories have grown by 22.5 million barrels – the biggest growth since 2015. At that time, oil markets had substantial oversupplies, which led to the massive drop in oil prices that bottomed at $27.00 per barrel in 2016.
This oversupply is primarily focused on the U.S., as it is producing record high amounts of crude. However, as the IEA and OPEC have both revised their demand/growth numbers, there are concerns blossoming of oversupplies in the broader market.
WTI lost another $1.40 to end yesterday at $68.65 per barrel.
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