On Monday, official data showed that Chinese demand for crude oil declined in July, which together with a stronger greenback and concerns over a rise in OPEC output weighed on investors’ sentiment and pushed the price of the black gold lower. As a result, light crude lost 2.52% and closed the day below $48. How low could the commodity go in the coming days?
In the battle between the bulls and the bears, the one trend that remains constant is the trend of falling U.S. crude oil supply. Once again, the crude oil supply drop far exceeded market expectations, and according to data from the American Petroleum Institute, it fell by 9.2 million barrels last week.
Major U.S. indices slid for a second straight week as President Donald Trump and North Korea both escalated their saber-rattling, with Kim Jong-un explicitly targeting Guam, home to a number of American military bases, and Trump tweeting Friday that “Military solutions are now fully in place, locked and loaded.”
An August 1 research report indicated that Diamondback Energy Inc.'s (FANG:NASDAQ) Kelley State 2H well, the company's first in the Lower Second Bone Spring, recently achieved a 30-day, peak flow rate of 898 boe/day.