WTI Crude oil futures took a sharp tumble today, falling for second session as broad demand worries and correction in global equities hurt the sentiments. Oil had hit and half week high earlier this week but the prices witnessed a sharp reversal yesterday after the US Energy Information Administration (EIA) cut its outlook for 2019 crude oil prices by $ 3.50 per barrel for WTI and $ 2.95 per barrel for Brent on uncertainty about global oil demand growth.
EIA now expects Brent to average $ 66.69 per barrel in 2019, down from $ 69.64/b in last months outlook though it held its 2020 Brent outlook steady at $ 67 level. EIA now sees WTI crude averaging $ 59.29 per barrel in 2019, down from $ 62.79 per barrel in last months outlook, and unchanged at $ 63 per barrel in 2020. Demand-side concerns became the most salient issue during the past month and contributed to volatility and price declines for risk assets such as commodities and equities, EIA said in its Short-Term Energy Outlook.
Oil has not been able to sustain gains in recent weeks despite worries about OPEC resorting to continued production cuts to pump up the market. The WTI Crude oil futures are currently trading at $ 51.74 per barrel, down around 2.87% on the day. MCX Crude oil futures are quoting at Rs 3605 per barrel, down 3% on the day after a sharp gap down opening that saw the futures open at Rs 3645 per barrel compared to its previous close of Rs 3720 per barrel.