Oil prices slide as strong supplies exceeded the reduction

By Erwin herself

Houston (Reuters) -Oil prices fell on Friday, as concerns about the large supplies and the low demand outperformed expectations that the first interest rate of the year by the US Federal Reserve will lead to more consumption.

Brent crude futures settled at $ 66.68 a barrel, a decrease of 76 cents or 1.1 %. Futures in the western United States in Texas ended at $ 62.68, a decrease of 89 cents or 1.4 %.

Both standards rose for a second consecutive week.

“Oil supplies are still strong, and OPEC reduces oil production discounts,” said Andrew Leipo, President of Lipow Oil Associats. “We have not influenced Russian crude oil exports” from the sanctions.

The Federal Reserve reduced the policy price by a quarter of a percentage point on Wednesday and indicated that more cuts would follow because it responded to the signs of weakness in the American job market.

Low borrowing costs usually enhance the demand for oil and pay prices higher.

John Koldov, a partner with Capital again, said that the discounts in the prices of the future federal reserve at a quarter of a percentage point are likely to not strengthen the oil markets because it will weaken the dollar, making the purchase more expensive.

“The federal reserve should be more aggressive than they were,” Koldov said. “We need 50 (an increase in a basis point) to increase the demand. The FBI’s work is not translated into raw market due to the basics of the basic market.”

On the side of the request, all energy agencies, including the United States Energy Information Management, indicated concern about weakening the demand and calm expectations of high prices in the short term, said Priyanka Sashdiva, an analyst at Philip Nova.

Lebo also saw effects on the demand side.

He said, “The filter’s transformation season will reduce the request,” he said.

Refiners closed production units in the spring and autumn of reforms, which are called transformation.

A higher increase than 4 million barrels to US distillation stocks raised concerns about the demand for the best oil consumers in the world and compressed prices. (Eia/s)

The latest economic data added to fears, while softening the job market in the United States, while building one -family homes fell to its lowest level in August in August, which is frustrated by an abundance of new houses that are not sold.

(Erwin Siba was participated in the coverage in Houston and Stephanie Kelly in London;