Upstream Stocks Fell, Crude Oil Is near Two-Month Lows

US E&P (exploration & production) stocks fell in the week ending August 17 after crude oil breached the $65 per barrel level and came closer to the two-month low of $64.7 per barrel. Overall, US crude oil fell 2.5% last week and ended at $65.9 per barrel. The expectations of low global demand due to a rise in trade war tensions, a higher-than-expected increase in US crude inventories, and the strong US dollar weighed on crude oil prices last week. A decline in crude oil prices and the widening WTI spread leads to weakness in upstream stocks.