Crude oil falls further on huge US stock build

19 September 2012 16:03  [Source: ICIS news]

LONDON (ICIS)--Crude oil fell by about 80 cents/bbl on Wednesday, adding to earlier losses, when this week’s US stock figures showed a massive build on crude stocks, well above forecast levels, completely overriding unexpected draws on both distillates and gasoline.

Prices had already plummeted earlier in the day on the back of a stronger US dollar, renewed concerns over the Spanish economy and a statement from the OPEC Secretary General that there was no shortage of oil anywhere in the world. In the meantime, further downward pressure came from promises by Saudi Arabia to raise production to cap rising prices.

October NYMEX light sweet crude futures fell from around $93.00/bbl before the figures from the Energy Information Administration (EIA) were published to hit a low of $92.21/bbl, a loss of $3.08/bbl from Tuesday’s close

However, they then regained a little ground and at 14:40 GMT, October NYMEX crude was trading around $92.80/bbl, down $2.49/bbl from Tuesday’s close of $95.29/bbl.

On ICE Futures, November Brent also lost ground, falling from around $109.00/bbl before the figures were published to hit a low of $108.48/bbl. At 14:40 GMT, November Brent was again trading around $109.00/bbl, down $3.03/bbl from Tuesday’s close of $112.03/bbl.

Analysts predicted this week’s US stock figures would show a build on crude stocks of about 200,000 bbl, a build on distillate of around 800,000 bbl and a build on gasoline of around 1.6m bbl.

The American Petroleum Institute (API) figures were published late on Tuesday.

US stocks

(million bbl)

w/e 14.09.12


 



EIA

Change

API

Change

Crude

367.6

+8.5

361.4

+2.4

Gasoline

196.3

-1.4

197.8

+0.1

Distillate

128.2

-0.3

127.8

-1.1

Heating Oil

28.4

-0.4

28.8

n/c

Jet Kerosene

43.4

+1.3

42.4

+0.2


By: Tony Dillon
+44 20 8652 3214



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