There we go again, another negative week for oil amid a generally negative market sentiment and fortifying fears that oversupply is imminent in Q1 2019.
Bullish factors that include supply disruptions in Lybia taking out some 400kbpd of production and the OPEC+ production cuts were overwhelmed by concerns regarding US crude production volumes, an unexpected US commercial crude stock buildup (API announced a 3.45 MMbbl increase) and a global economic slowdown.
On Tuesday alone WTI witnessed a sharp 7 percent drop, whilst Brent decreased by 6 percent in one single day, making it one of the worst oil trading days of 2018. Crude prices have steadied a bit since then but it seems that the plethora of oil-related concerns will not allow for a quick recovery. On Wednesday WTI traded around 46.5-47 USD per barrel, whilst global benchmark Brent oscillated in the 56.5-57 USD per barrel interval.