Crude oil continued to slide lower in early trading, as the number of factors that threaten demand seem to continually increase. Front-month crude futures are down over 7% in July alone, as the market seems to have been flooded with supply. With the market on track to post the worst monthly loss since July 2016, U.S. output remains at record high levels. Analysts are predicting a 3 million barrel drop in inventories in tomorrow’s EIA report.
In other oil news:
-RBOB Gasoline futures are down around 2% in early Tuesday trading.
-Kuwait Foreign Petroleum Exploration Company is in the process of borrowing $1.1 billion to spend on oil and natural gas projects as the company intends to build its shale operations.
-BP reported that they were more profitable than expected in the second quarter, shortly after announcing its biggest deal in two decades: the purchase of Australian mining company BHP Billtion Ltd.
-China & the U.S. are trying to restart trade talks in an attempt to avert a full-blown trade war between the world’s two largest economies.