Oil Sinks Below $70 as Physical Market Signals Ample Supplies
- Gauge of Cushing inventories indicates lower near-term demand
- Brent trades below $74 a barrel after ticking upward on Monday
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Oil fell below $70 as the physical market for crude signaled that supplies are more than adequate to meet tepid demand.
West Texas Intermediate’s June-July cash roll, which reflects crude supply balances at Cushing, Oklahoma, dropped to a discount of 30 cents a barrel, indicating lower demand for barrels being delivered in June than in July. Stockpiles at the delivery point for benchmark US crude futures rose 1.05 million barrels in the week ending May 26, according to traders, who cited data from Wood Mackenzie.