Weekly Energy Review: Crude Oil Tumbles To 2 Week Lows

Crude oil futures tumbled Friday, hitting fresh 2-week lows amid expectations OPEC will ramp up demand. Meanwhile, the U.S. shale boom continues. Baker Hughes reported today that the number of active U.S. rigs drilling for oil rose by 1 to 863 this week. Commodities were hammered today along with global stocks. Rising interest rates and trade tensions are spooking traders. July WTI oil was down $ 1.83, or 2.7%, to settle at $ 65.06/bbl. Prices were down 1 percent for the week.

Growth in New York manufacturing activity unexpectedly accelerated in the month of June, according to a report released by the Federal Reserve Bank of New York on Friday. The New York Fed said its general business conditions index climbed to 25.0 in June from 20.1 in May, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to edge down to 19.0.

Crude inventories dropped 4.1 million barrels in the week to June 8, compared with analysts expectations for a decrease of 2.7 million barrels. Gasoline stocks fell 2.3 million barrels. U.S. crude oil production is expected to rise by less than previously expected to 11.76 million barrels per day (bbl/d) next year, the EIA said.