US Reliance On OPEC Oil Hits 30-Year Low

EIA Oil Report

EIA Oil Report

Oil prices fell for a second day on June 13, extending declines of as much as 4% in the previous session, on continued increases in United States crude stockpiles and concerns about lower demand growth.

"Its definitely a market that is still in some disbelief of these inventory builds, and they're not going to be able to look beyond it", said Phil Flynn, analyst at Price Futures Group in Chicago.

U.S. West Texas Intermediate crude futures ended $2.13, or 4.0%, lower at $50.72 a barrel, its lowest settlement since January 14.

Such a disruption "could further exacerbate the supply problem", said Andy Lipow, an analyst at Lipow Oil Associates in Houston.

Vienna-based OPEC also said its output fell in May as U.S. sanctions on Iran boosted the impact of the supply pact. "The concerns about demand growth are still extremely strong, and US stocks have risen dramatically".

Brent crude futures were up $1.72 at $61.69 a barrel by 0757 GMT, having risen earlier by as much as 4.45 percent to $62.64.

United States sanctions directed at Venezuela's energy sector generally and Petróleos de Venezuela, S.A. specifically have driven USA imports from Venezuela to recent low levels.

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Analysts said the price swings were subdued by recent grim forecasts for global crude demand.

"Significant downside risks from escalating trade disputes spilling over to global demand growth remain", OPEC said in the report. "For traders, worries about the weakening global oil-demand picture are front of mind and enough to trump real, live geopolitical threats to physical supply". Nigeria and Saudi Arabia, too, both produced fewer barrels in May, with Nigeria's production falling to 1.733 million barrels-a decrease of 92,000 barrels per day. "This has resulted in a slowdown in global economic activities, and weaker growth in global oil demand". -China trade dispute has escalated since last month with an expanding exchange of tariffs.

According to EIA's data, the USA imports of crude from OPEC members totaled 1.5 million barrels per day (b/d) in March.

The attacks sent crude prices soaring on news of the attacks, which occurred in the world's biggest oil choke point. "Naturally, the extension of trade disputes could weigh on economic growth".

Official weekly data from the EIA is due later in the day.

API Reports an Increase in SupplyOn Wednesday, oil prices have declined as the US Energy Information Administration (EIA) cut its outlook for global oil demand growth this year while the American Petroleum Institute (API) announced an increase in crude stockpiles, which surprised the markets.

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