Oil futures fell markedly, continuing yesterday’s trend and updating the 3-week low. The pressure on prices put concerns about over-saturation of the market, which intensified after the publication of the US petroleum inventories report.
Recall, the US Department of Energy reported that in the week from August 19 to 26 commercial oil stocks rose 2.28 million barrels to 525.87 million. Analysts were expecting growth of only 1.31 million barrels. Gasoline inventories fell last week by 691 thousand. barrels to 232.004 million barrels. Experts predicted a decline of 1 million barrels. Distillate stocks rose by 1.496 million barrels to 154.753 million barrels. Analysts expected an increase of 300,000 barrels. The utilization of refining capacity increased by 0.3% to 92.8%. Analysts had expected a decline of 0.4%. US domestic oil production dropped to 8.488 million. barrels per day versus 8.548 million. barrels per day from the previous week.
“Recent data in the US oil reserves suggest that excess supply will remain longer than expected,” – said Hans van Cleef, an economist at ABN AMRO Bank N.V. – In addition, the possible strengthening of the dollar, if the Fed will raise rates will negatively affect the price of oil. Also the uncertainty regarding the OPEC meeting, the results of which will be shown later this month.
The cost of the October futures for US light crude oil WTI (Light Sweet Crude Oil) fell to 43.67 dollars per barrel.
October futures price for North Sea petroleum mix of mark Brent fell to 45.79 dollars a barrel on the London Stock Exchange ICE Futures Europe.
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