US crude oil settled in a bear market on Wednesday and Brent lurched to a six-month low after stockpiles of US crude unexpectedly jumped by the most in five weeks to a fresh 22-month high, adding to pressure on prices.
West Texas Intermediate, the US crude marker, shed $1.80 to settle at $51.68 a barrel — the lowest since January, according to Refinitv data. The day’s slide pushed it into bear market territory, defined as a decline of 20 per cent or more from a recent peak. WTI is now 22 per cent lower than its April high of $66.30 a barrel.
Brent crude settled $1.34, or 2.2 per cent, lower at $60.63 a barrel and is edging towards a bear market. The global oil marker broke below the $60 a barrel level earlier in the day to hit its lowest since January.
Crude prices tumbled last month amid concerns the escalating trade war between the US and China could have a knock-on effect on the health of the global economy and weigh on demand for oil.
The moves on Wednesday came as data showed stockpiles of US crude climbed by 6.8m barrels last week to 483.3m — the highest level since July 2017, the Energy Information Administration said on Wednesday.
That was the biggest build in five weeks. Analysts expected a draw of 849,000 barrels, according to a Refinitiv survey. Meanwhile, inventories of gasoline, a product that oil is refined into, rose by 3.2m barrels, against expectations for a smaller 630,000 barrel build.
The report also showed America’s total stocks, which include crude, gasoline and diesel, grew by more than 22m barrels last week, the biggest jump in almost 30 years.
Lower oil prices risk undermining efforts by global producers, led by Opec and its allies outside of the cartel, to tighten the market through supply curbs. Ministers are due to meet in the coming weeks to decide whether to continue with the cuts policy.
Igor Sechin, Russian oil company Rosneft’s chief executive, this week questioned the logic of Russia curbing its output further, warning producers in the US could raise production and take its market share.
“Does it make sense [for Russia] to reduce [oil output] if the US immediately takes [our] market share?” Mr Sechin said according to the domestic Interfax news agency. “We have to defend our market share,” he said.
Oil prices have fallen despite geopolitical factors ranging from stricter US sanctions on Iran to an escalation of tensions in the Middle East.

Coffeeguyzz on Wed, 5th Jun 2019 8:19 pm
Mr. Short’s models predicted all this stuff, Imma t’inkin’.
The Russians are declaring an expansion of their recent production levels …so … how’s mo’ product gonna affect pricing?
What does all this mean regarding the amount/abundance of earl?
makati1 on Thu, 6th Jun 2019 3:34 am
Cloggie: You might be interested in a two book novel I just finished reading called “Pandora’s Star” & “Judas Unchained” by Peter F. Hamilton. It takes place about 2380 when there are many planets connected by wormholes and everything is hi-tech. Of course there is a villain, a few aliens and multiple story lines which make it very interesting.
https://www.amazon.com/Pandoras-Star-Commonwealth-Saga-Book-ebook/dp/B000FC1AFC
It is everything you would wish for and more. A believable extension of today, if the human species survives this century. If you can pay the bill, you can be ‘re-lifed’ and basically live forever. I think you would like it. Have a great day!
Robert Inget on Thu, 6th Jun 2019 12:12 pm
HFI Research Retweeted
@FirstSquawk
2h2 hours ago
More
Russia’s Transneft Ceo Tokarev Says Cleanup Of Druzhba Pipeline Will Take 6-8 Months – Ifax
#OOTT
This 110 mile pipeline is contaminated with highly acidic crude oil. Normally carries 500,000 to one million barrels p/d to Eastern Europe. Oil from other than Russia must be mixed with the contaminated at a ratio of 10 parts good to 1 part ugly.
On top of almost zero oil coming out of Venezuela
our mini ‘glut’ is self induced. (by over production) Ultra light *NGL and crude combined.
IOW’s NGL’s and actual crude are counted as one)
The word is, refineries are hoarding in a very
real event of an “accidental war” with Iran and of course China.
Stand by for another ‘oilwar’, and you had no idea why/
https://www.vox.com/2019/5/24/18638286/us-loophole-saudi-arabia-uae-weapons-sale
You must know, almost everything Trump says must be taken as reversed.
https://www.bloomberg.com/news/articles/2019-06-05/president-trump-says-there-s-always-a-chance-of-war-with-iran
IMO This statement is as good as a declaration of war. Why would Iran believe Trump when our allies
do not. He went back on the Nuclear agreement
not Iran. IOW’s no world leaders can trust anything he or his minions say.
Even a so called ‘limited strike’ with ‘conventional weapons’ will make the entire Mid East radio active. Certainly anything downwind of Iranian and Israeli reactors. Millions die, for what?
*NGL = Natural gas liquids
Robert Inget on Thu, 6th Jun 2019 12:50 pm
India:
The third largest economy.
Fourth biggest crude oil importer.
More poor people than China.
Maybe, more people.
Is now the biggest manufacture of solar panels.
Is aiming to slow oil imports.
Aiming ain’t good enough. YET.
https://tech.slashdot.org/story/19/06/06/1454247/india-orders-uber-and-rival-ola-to-electrify-40-of-fleets-by-2026
Both India and China make really cheap EV’s.
So far, most are powered with lead acid batteries.
When, not if battery tech permits lower cost batteries, Katey, bar the door. EV’s can be exported w/o batteries, no sweat.
Trump quietly place Tariffs on India. “Just because”(of Trump’s War on Trade)
Robert Inget on Thu, 6th Jun 2019 1:01 pm
Sudanese protesters gunned down, hundreds
shot.
Most of Sudan’s oil reserves are located in the Muglad and Melut rift basins in the south of the country. Oil fields in the south, such as those at Heglig and in the South Sudanese state of Unity, formerly part of Sudanese territory, are linked to the country’s refineries via pipelines.
Economy of Sudan – Wikipedia
en.wikipedia.org/wiki/Economy_of_Sudan
makati1 on Thu, 6th Jun 2019 6:31 pm
Cloggie: In case you missed it…You might be interested in a two book novel I just finished reading called “Pandora’s Star” & “Judas Unchained” by Peter F. Hamilton. It takes place about 2380 when there are many planets connected by wormholes and everything is hi-tech. Of course there is a villain, a few aliens and multiple story lines which make it very interesting.
https://www.amazon.com/Pandoras-Star-Commonwealth-Saga-Book-ebook/dp/B000FC1AFC
It is everything you would wish for and more. A believable extension of today, if the human species survives this century. If you can pay the bill, you can be ‘re-lifed’ and basically live forever. I think you would like it. Have a great day!
Robert Inget on Fri, 7th Jun 2019 10:30 am
PO editor permits Nazis free access.
Nuff said.