WTI and Brent crude prices lost more than 7% last week with many observers believing worries over clearing supply disruptions are now dominating trade.
“There is concern about a flood of a supply coming on the market just as demand hits its seasonal peak,” said Phil Flynn, senior market analyst at Price Futures Group.
“Canadian crude oil will start to trickle in as the oil put in the pipeline will start to show up in our inventory reports,” he said in a note. And “Iran is bragging that they are just waiting for the right time to raise their exports to about 4 million barrels a day.”
Traders also expect to see more oil from Nigeria and Libya, at a time when crack spreads are tanking around the globe” as record-breaking oil supply turns into record-breaking inventories of products, he said.
At the same time, “demand around the global continues to exceed expectations,” but short-term energy-demand concerns tied with the U.K.’s decision to leave the European Union are “becoming a weight and an argument against short-term market balance,” said Flynn.Click here to read more.
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