Fuel inventories in various countries are full
July 19, 2016: Oil prices were down by more than one percent on Monday after rising stock piles of crude and refined fuel raised concerns of another glut getting built up. There were also worries about potential supply disruption following a coup attempt in Turkey. The market is now waiting for US crude stocks data on Tuesday and Wednesday to help give direction to prices.
Fuel inventories in the US, Europe and Asia are full despite this being the peak demand season. Hence, expectations of any recovery in oil price are low.
Oil prices are up nearly 75 percent since hitting 12-year lows of around $27 for Brent and about $26 for WTI in the first quarter. The rally has stalled since the two benchmarks breached the $50 a barrel mark in May, as worries grew that higher prices will fuel more production.