WTI declines with low demand from slower refineries
September 5, 2014 4:27 am
West Texas Intermediate declined today behind a report from the US government detailing how refineries in the country have reduced operations at the conclusion of the peak driving season.
Futures for the American oil with a delivery date in October fell 1.1%, or $1.09, to arrive at a price per barrel of $94.54 today on the New York Mercantile Exchange. Contracts for the crude benchmark dropped to the lowest value in almost two months on September 2nd when it fell to $92.88. WTI has declined this year by 4% so far.
A report from the Energy Information Administration (EIA) says that refineries across the US, the largest oil consumer in the world, operated 0.2% less from August 22nd at only 93.3% of their capacity. The months of September and October have traditionally been maintenance periods for refineries as they make preparations to shift from summer to winter fuels.
Oil market research head Mike Wittner from New York’s Societe Generale SA says that, “Refiners in the U.S. are going into maintenance, which is going to reduce demand for crude here and weigh on WTI. We could see WTI fall relative to Brent in the months ahead because of U.S. maintenance.”
The EIA also released figures that showed that crude oil stockpiles in the country decreased by 905,000 barrels during the week that ended on August 29th to bring the total to 359.6 million. Oil supplies at the New York market’s delivery point in Cushing, Oklahoma similarly shrunk for the first time in five weeks by 385,000 barrels for a total of 20.3 million. Inventories of gasoline went down to 210 million barrels after losing 2.32 million while daily consumption of the fuel climbed 4.2% to 9.48 million barrels during the same time.
Brent, the European benchmark, likewise fell by 0.9%, or 94 cents, to close at a price per barrel of $101.83. It traded in London’s ICE Futures Europe exchange with a premium over WTI of $7.38 up from yesterday’s $7.23.
The material has been provided by InstaForex Company – www.instaforex.com
West Texas Intermediate declined today behind a report from the US government detailing how refineries in the country have reduced operations at the conclusion of the peak driving season.
Futures for the American oil with a delivery date in October fell 1.1%, or $1.09, to arrive at a price per barrel of $94.54 today on the New York Mercantile Exchange. Contracts for the crude benchmark dropped to the lowest value in almost two months on September 2nd when it fell to $92.88. WTI has declined this year by 4% so far.
A report from the Energy Information Administration (EIA) says that refineries across the US, the largest oil consumer in the world, operated 0.2% less from August 22nd at only 93.3% of their capacity. The months of September and October have traditionally been maintenance periods for refineries as they make preparations to shift from summer to winter fuels.
Oil market research head Mike Wittner from New York’s Societe Generale SA says that, “Refiners in the U.S. are going into maintenance, which is going to reduce demand for crude here and weigh on WTI. We could see WTI fall relative to Brent in the months ahead because of U.S. maintenance.”
The EIA also released figures that showed that crude oil stockpiles in the country decreased by 905,000 barrels during the week that ended on August 29th to bring the total to 359.6 million. Oil supplies at the New York market’s delivery point in Cushing, Oklahoma similarly shrunk for the first time in five weeks by 385,000 barrels for a total of 20.3 million. Inventories of gasoline went down to 210 million barrels after losing 2.32 million while daily consumption of the fuel climbed 4.2% to 9.48 million barrels during the same time.
Brent, the European benchmark, likewise fell by 0.9%, or 94 cents, to close at a price per barrel of $101.83. It traded in London’s ICE Futures Europe exchange with a premium over WTI of $7.38 up from yesterday’s $7.23.
The material has been provided by InstaForex Company – www.instaforex.com
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