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Crude futures lower as traders fret about growth

Brent crude for September delivery is down 0.862% at US$47.55 a barrel, while the US crude benchmark - West Texas Intermediate - is down 0.561% at US$46.34
Oil rig worker surveys the scene
Crude futures are a tad lower on Wednesday

Crude futures didn't move the needle much on Wednesday as traders fret over global growth.

Fears of a slowdown, which in turn means less demand for the black stuff, used in pretty much everything from transport to construction, is currently weighing heavy in the market.

Brent crude for September delivery is down 0.862% at US$47.55 a barrel, while the US crude benchmark - West Texas Intermediate -  is down 0.561% at US$46.34.

It comes ahead of the key stats on stockpiles from the  American Petroleum Institute (API) later.

A poll for Reuters forecasts a 2.5-million-barrel draw in crude and a 1.2-million-barrel fall in gasoline inventories.

Also troubling oil traders is the continued fallout from the UK's decision to Brexit, which could spell a long period of economic uncertainty ahead.

This has put investors off riskier assets classes like oil.

Data from the US government's Energy Information Administration (EIA) is delayed to Thursday (tomorrow) at 11 am.

One analyst compared the whole rebalancing of the oil market at the moment to balancing on one of those paddle boards, adding that we were on "choppy seas right now".

Spot US crude is down 0.79% to  US$46.22 a barrel at the time of writing.


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