Oil Falls 3pc In Part Amid Rising US Inventories

  • Oct 12, 2018 AEDT
  • Team Kalkine
Oil Falls 3pc In Part Amid Rising US Inventories

By a bigger-than-expected shape up in US crude inventories investor sentiment were made more bearish, oil prices slumped to more than two-week lows as global stock markets fell. After hitting a low of $US79.80, Brent crude futures had a 3.41 per cent loss fell $US2.83 to settle at $US80.26 a barrel, which is its weakest since September 24, 2018. After hitting a four-year high of $US86.74 on October 3, 2018 the global benchmark has retreated. To settle at $US70.97 a barrel, a 3.01 per cent loss, US West Texas Intermediate (WTI) crude futures fell $US2.2, since September 21, 2018 WTI hit its lowest.

An increase more than double analysts' expectations of a 2.6 million-barrels, the Energy Information Administration said, US crude inventories rose 6 million barrels last week. President of Lipow Oil Associates, Andrew Lipow said, “The important increase in crude oil inventories reflects refineries going down for maintenance”. The EIA data showed, as utilization rates dropped 1.6 percentage points refinery crude runs fell by 352,000 barrels per day. What also weighed on crude futures, was the falling US equity markets and a global risk-off environment. 

With regard to oil demand expectations the oil market could begin to discount a worst-case scenario, as equities slide amidst rate increases, compared than the more transparent supply side the demand side of the oil equation is always more difficult to distinguish, president of Ritterbusch and Associates, Jim Ritterbusch said in a note. For a third straight month for oil next year, forecast of global demand growth has been cut by the organization of the Petroleum Exporting Countries, which is facing the broader economy from volatile emerging markets and trade disputes. On Thursday October 12, 2018 the group's secretary-general said, OPEC is cautious of creating a surplus next year and sees the oil market as well supplied.

According to the Bureau of Safety and Environmental Enforcement (BSEE), due to Hurricane Michael producers had cut output by 40 per cent on Thursday in the US Gulf of Mexico. As the third most powerful hurricane in the history to strike the US mainland, on Wednesday Michael crashed on shore Florida, and has weakened after that to a tropical storm.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.




All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK