Oil Prices Are On A Nose-dive With Rising Supply Concerns

  • Nov 14, 2018 AEDT
  • Team Kalkine
Oil Prices Are On A Nose-dive With Rising Supply Concerns

A negative demand outlook and US President Donald Trump's Twitter critique of the world's biggest crude exporter, deepened oil’s decline as investors fled a market by excess supplies. On Tuesday, Futures plunged 6 percent in both London and New York. At a time of steadily rising American production and stockpiles, OPEC's dire forecast for 2019 demand came.

President Trump cautioned Saudi Arabia to mourn prices that dipped below $US57 a barrel for the first time since December and curb output in a matter of weeks. A senior commodities strategist at ING Bank ‘prices were not helped by this tweet’. 

OPEC will likely try to ignore President Trump's call as much as possible, given the growing global surplus over the first half of 2019. For a record 12 sessions on fears of a supply surplus, West Texas Intermediate futures have fallen.

To the lowest in 14 months as of November 6, money managers combined bullish positions in WTI and Brent sank, as long positions shrank and shorts increased commodity Futures Trading commission data show.

Adding to the shorts are the trend following guys and liquidating longs are global macro guys, getting a combination of the systematic CTAs. At 12.48pm WTI for December delivery dropped on the New York Mercantile Exchange to $US57.24 a barrel i.e. by $US2.69. While above the 100-day average, the Total volume traded Tuesday was almost 60 percent.

On the London-based ICE Futures Europe exchange, Brent futures for January settlement fell $US3.06 to $US67.06. The global benchmark crude for the same month traded at a $US9.73 premium to WTI.

John Kilduff, partner at Again Capital, sent a negative signal to the market in coming together to cut 1 million barrels, that unwillingness yesterday and over the weekend by Russia to participate. Since May 2017 early on Tuesday, the Bloomberg dollar spot Index touched the highest, before slipping back.


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