Oil Falls With Inventory Climb

West Texas Intermediate crude decreased, extending a second monthly loss, after a government report showed that U.S. inventories surged to a four-month high.

Futures fell after the Energy Information Administration said stockpiles rose 4.09 million barrels to 383.9 million last week. A 2.4 million-barrel gain was projected in a Bloomberg survey. The EIA, the Energy Department’s statistical arm, said supplies at Cushing, Oklahoma, the delivery point for WTI traded in New York, increased 2.18 million barrels to 35.5 million, a two-month high.
WTI for December delivery declined $1.17, or 1.2 percent, to $97.03 a barrel at 10:37 a.m. on the New York Mercantile Exchange. The contract traded at $97.15 before the release of the report at 10:30 a.m. in Washington. The volume of all futures traded was 25 percent lower than the 100-day average. Prices are down 5.2 percent this month after losing 4.9 percent in September.

Brent for December settlement rose 15 cents to $109.16 a barrel on the London-based ICE Futures Europe exchange. Volume was 21 percent below the 100-day average. The European benchmark traded at an $12.13 premium to WTI, up from $10.81 yesterday.

Crude supplies gained 7.9 percent in the six weeks ended Oct. 25. The U.S. will account for about 21 percent of global oil demand this year, almost double the estimate for China, the second-largest consumer, according to forecasts from the International Energy Agency in Paris.

via Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.