17 October 2015

US Supply Data Bearish for Crude Oil & Natural Gas

Oil-rig reductions suggest a decline of more than 250,000 bpd in U.S. crude production between the second and fourth quarters of this year, Futures for crude oil sank to the lowest level in more than a week as US inventories expanded more than was expected by market participants. The Energy Information Administration reported that stockpiles swelled by 7.6 million barrels last week from the week before to 468.6 million. It was the biggest gain since April. Experts had predicted much smaller increase by 2.2 million. November futures for delivery of WTI crude oil sank 3.02 percent to $45.23 per barrel as of 22:08 GMT on NYMEXtoday. Contract for Brent crude dropped 0.9 percent to $48.71 per barrel on ICE.
Supply data from the EIA was bearish for natural gas as well. It showed an increase of reserves by 100 billion cubic feet last week. It exceeded both the previous weeks gain by 95 billion and the consensus specialists’ forecast of a 92 billion rise. November natural gas slid by 2.66 percent to $2.45 per million British thermal units on NYMEX today.

No comments:

Post a Comment