US crude falls $1.64/bbl on stronger dollar, pipeline restart

31 May 2013 20:59  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX West Texas Intermediate (WTI) for July delivery settled at $91.97/bbl, down $1.64 versus the previous close, in response to various price-challenging market forces.

TransCanada’s northern portion of the Keystone Pipeline carrying Canadian crude oil to the Cushing, Oklahoma, storage hub resumed pumping after a short delay, adding to all-time high inventories revealed earlier in the week by the supply statistics from the Energy Information Administration (EIA).

Also, the dollar rose against a basket of currencies.

US consumer spending fell and European unemployment reached a new high, both of which pressured crude benchmarks. However, this was offset somewhat by another report showing consumer sentiment rising to its highest level in six years.

Investors worrying that favourable economic data will end the Federal Reserve’s stimulus programme, which dragged the stock market down.

As expected, OPEC’s meeting in Vienna, Austria, agreed to leave output quotas unchanged at 30m bbl/day.

Downside momentum drove July WTI down to establish an intra-day low of $91.83/bbl, down $1.78.

ICE Brent for July delivery bottomed out at $100.27 after settling at $100.39/bbl, down $1.80.

By: Ignacio Sotolongo
+1 713 525 2653

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