News: Brent crude back on the slide

  1. Oil prices fell on Thursday as traders again eyed rising oil stockpiles in America.

    Stats from the US Energy Department revealed a 3.7mln barrel increase in the US oil surplus, rather than the anticipated 1.5mln barrel draw, and it followed the corresponding figures from the American Petroleum institute which showed a 3.3mln rise in stockpiles.

    It adds to the growing sense that the market is amply supplied with crude.

    In London trading Brent Crude futures fell 95 cents to trade at US$98 per barrel, whilst West Texas Intermediary futures were down about 45 cents at US$94.

    Earlier this week it was speculated that the OPEC oil producers cartel would cut back its production in order to squeeze prices back into its targeted range above US$100 per barrel.

    If it happens it would be the cartel’s first move in this direction for around six years and it comes after supplies had risen in a bid to maintain continuity whilst conflicts in Iraq and Libya threatened to disrupt supplies.

    Experts believe Saudi Arabia, the most prolific producer among the OPEC members, would be the most likely to reduce its output.

    Overnight oil traders will be watching for news on Scotland’s independence referendum, given the potential uncertainties for the North Sea oil industry - which  provides the basis for Brent, the international benchmark.

     

 
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