Oil Falls on U.S. Inventory Build
by Bloomberg | Mia Gindis and Alex Longley
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas
Oil dropped as US crude inventories posted an unexpectedly high build and the Biden administration renewed efforts to secure a cease-fire in the Middle East.
West Texas Intermediate fell about 1.4% to settle below $71 a barrel, while global benchmark Brent slid to settle at just under $75. US government figures showed the country’s crude stockpiles rose by 5.47 million barrels last week, more than the 1.6 million-barrel increase projected by an industry group on Tuesday.
That caused WTI’s prompt spread — the difference between its two nearest contracts — to fall to the lowest intraday level since early this month during the session, a sign of a potential supply glut. On a seasonal basis, crude processing now is at the highest since 2018 as refineries increased runs.
Crude prices found a floor during the day thanks to persisting geopolitical risks, according to Brian Kessens, a managing director at Tortoise Capital Advisors.
“If we had seen something really notable on the production side, that may have been a bigger driver, but this is a number that the market can look through and say ‘Hey, what’s going on with the macro again?’” Kessens said.
WTI pared losses on a report that Nigeria plans to defer as many as six cargoes of Forcados crude that were due to load next month into December.
Oil has had a roller-coaster ride in October, with traders piling into options markets as hostilities in the Middle East raised the specter of supply disruptions in a region that accounts for about a third of world output. Meanwhile, US Secretary of State Antony Blinken and Israeli Prime Minister Benjamin Netanyahu agreed the recent killing of Hamas leader Yahya Sinwar opened new possibilities for ending the conflict in Gaza.
Oil Prices:
- WTI for December delivery shed 1.4% to settle at $70.77 a barrel in New York.
- Brent for December settlement fell 1.4% to settle at $74.96 a barrel.
by Bloomberg | Mia Gindis and Alex Longley
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas