07 May 2013 15:54 [Source: ICIS news]
LONDON (ICIS)--NYMEX light-sweet crude oil futures fell by more than $1.00/bbl on Tuesday pressured by expectations that crude stocks increased last week and North Sea Buzzard crude is producing at full capacity.
By 14:18 GMT, the front-month June NYMEX WTI contract touched an intra-day low at $95.13/bbl, a loss of $1.03/bbl compared with the previous settlement. The contract then gained a few cents to trade around $95.25/bbl.
At the same time, the front-month June ICE Brent contract was trading around $105.15/bbl, having touched an intra-day low at $104.68/bbl, a loss of 78 cents/bbl compared with the previous close.
According to polls, investors are expecting a build in US crude oil stocks for last week due to increased imports. The rise in US crude oil imports coincides with the recent narrowing of the Brent/WTI price spread, which makes it more economical for US refiners to import Brent-related crudes into the US.
Adding to downward pressure, the Nexen-operated Buzzard crude oil field was heard to be producing at full capacity of around 220,000 bbl/day. The oil field was unexpectedly shutdown last week after a release of steam last Monday. Production at the field resumed shortly afterwards albeit at reduced levels.
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