
Oil Prices Fall, U.S. Reserve Count Rises, CNBC's DeAngelis Discusses
NEW YORK (TheStreet) -- U.S. oil prices are declining below the $48 mark, as a study released Tuesday morning reported that the U.S. currently holds more reserves than Saudi Arabia and Russia, CNBC's Jackie DeAngelis said on "Squawk on the Street."
Crude oil (WTI) is lower by 3.86% to $47.10 per barrel and Brent crude is falling by 3.73% to $48.23 per barrel, CNBC noted.
While the study results are "great" for U.S. energy independence, they also awaken concerns that "there is a supply glut on the table" since the Saudis and Russians are the "world's greatest" exporters. In addition, the strengthening dollar is hurting oil prices, according to DeAngelis.
"We have supply and demand not really strong enough. We have oversupply, the U.S. rig count has increased the last three consecutive weeks. That means more oil is going to come. Also, the global demand picture continues to get weaker and weaker and weaker," Oppenheimer's Fadel Gheit, senior energy analyst, stated, explaining the declining oil prices further.
The economic downturn, caused by such things as the uncertainty surrounding the U.K.'s recent vote to leave the European Union, is further pressuring the demand side of production, Gheit noted.
He predicts oil prices will remain low "for longer than expected," or until the global markets balance out, which they will, Gheit assured.
Most oil stocks are heading lower today on the slipping oil prices.









