Oil prices declined across the board today as both Brent and WTI were negative.
News that OPEC nations increased production in May for the first time in three months had investors looking to close their speculative bets.
Additional news out of Libya that exports from Hariga Port should resume this week also increased downward pressure as salary negotiations with Petroleum Facilities Guard and the National Oil Company concluded.
The talking heads are now finally, saying that oil prices maybe higher than they should be and one should expect WTI to go below $100 bbl near term.
Bunker prices however remain mostly stable in the primary ports. It will take a stronger decline in crude to produce any real change in bunker prices.
Oil markets slid today, with WTI dropping to its lowest level in three weeks, as many investors believe that the recent run up in prices might have been a bit excessive.
Both benchmarks received pressure today as investors sold off from fear that a slower global economy could reduce oil demand, especially in China and the U.S.
Other investors are holding out, as they await news tomorrow from the Fed's two-day meeting for some guidance on when the central bank might begin to curb its current $85 billion per month bond-buying stimulus program.
Focus tomorrow will also lie on this weeks EIA Inventory Report for a view into U.S. oil demand, and the Commerce Department's report on second-quarter GDP, which many are expecting will show an expansion of only 1% annualized rate, compared to a 1.8% for the first quarter.
On Friday, the Labor Department will release non farm payroll numbers for July, which will give investors a look at the state of the U.S. jobs market and an idea of oil demand to follow.
Concern surrounding the U.S. economy are making many nervous about what demand might look like in the second half of this year.
WTI fell $1.47 to settle at $103.08/bbl today, while Brent only shed $0.54 to settle at$106.91/bbl. Bunker markets remained stable in the primary ports.