DTN Oil Update
Oil Dips on Global Glut Concerns; Weak US Data Outlook
SECAUCUS, N.J. (DTN) -- Crude futures edged lower on Monday driven by concerns over near term global oil oversupply and expectations that delayed U.S. economic data to be publish this week could be below market forecasts.
News that loading operations at the Black Sea oil hub Novorossiysk resumed on Sunday, Nov. 16, following a two-day outage caused by Ukrainian airstrikes, eased supply-constrain concerns that sent the market rallying more than 2% on Friday.
Additional downward pressure reemerged from last week's over bearish supply-demand forecasts from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA).
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In its latest monthly report, OPEC projected a 500,000-bpd crude surplus for the third quarter, reversing the 400,000-bpd deficit it forecasted in October. The IEA forecasted a 4.09 million bpd global oversupply for 2026, versus a prior 3.97 million bpd.
The delayed release of U.S. macroeconomic data, held back by a record-long 43-day federal government shutdown, also contributed to the bearish sentiment.
Some analysts have expressed concerns that the data to be released this week could contain more negative indicators for the economy than previously expected.
The U.S. Department of Commerce's Bureau of Economic Analysis is to publish data on U.S. imports and exports for August on Wednesday, Nov. 19.
The U.S. Bureau of Labor Statistics is scheduled to release the Employment Situation report for September, originally scheduled for Oct. 3, on Thursday, Nov. 20.
The NYMEX WTI contract for December delivery settled down $018 at 59.91 bbl. ICE Brent for January delivery closed down $0.19 at $64.20 bbl.
Among refined products, December RBOB gasoline futures finished down $0.0215 at $1.9901 gallon.
Front-month ULSD futures bucked the lower trend across NYMECX, rising $0.0159 to settle at $2.5470 gallon amid tight global supply outlook for diesel amid the Russia sanctions.
The U.S. Dollar Index strengthened by 0.0271 points to 99.47 against a basket of foreign currencies.