Crude oil futures slipped today after weekly U.S. data showed inventories of petroleum products already are starting to rise as summer draws to a close and the lower-demand fall season approaches: October WTI crude -1.4% at $67.77/bbl, Brent -1% to $76.50/bbl.
U.S. crude stockpiles fell 4.3M barrels last week, but the EIA report also showed gasoline and distillates inventories rose by a combined 5M barrels, and the grand total of crude oil and processed petroleum products rose by a bearish 3.6M barrels.
The sharp drop in prices is a quick reversal from earlier in the week when prices jumped, and DrillingInfo's Bernadette Johnson believes the main reason for today’s drop "is a correction after prices rose ahead of [tropical storm] Gordon. The storm was priced in but then changed course and prices came back down a bit.”
Stocks at the Cushing, Okla., delivery hub rose by 549K barrels, a "somewhat bearish" result, and the absence of Chinese buyers of U.S. crude oil is depressing export volumes, says John Kilduff of Again Capital Management, adding that U.S. production also is not growing at the same pace as earlier in the year.
ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, ERYY, ERGF, OILD, OILU, USAI
Subscribe for full text news in your inbox