21 October 2013 15:04 [Source: ICIS news]
LONDON (ICIS)--Front-month November NYMEX WTI crude futures fell below $100/bbl as investors expect crude oil stocks to have surged in the US adding to global oversupply.
By 13:00 GMT, the front-month November NYMEX WTI contract had fallen to an intra-day low at $99.50/bbl, a loss of $1.31/bbl compared to the previous settlement. The contract then edged a few cents higher to trade around $99.55/bbl.
At the same time, the front-month December ICE Brent contract was trading around $109.45/bbl, having touched an intra-day low earlier at $109.21/bbl, a loss of 73 cents/bbl compared to the previous settlement.
US crude oil stocks are expected to have surged. However, due to the partial shutdown of the US government the Energy Information Administration (EIA) has not been able to release its weekly stock report.
The EIA is now expected to release its stock report later on Monday.
The rise in US oil stocks will add to the already flood of oil supplies across the globe. Rising production from the North Sea and other regions for November-loading is pressuring the value of crude amid the bearish market fundamentals where refiners across Europe and especially the Mediterranean have cut refinery run rates to minimise losses.
In the Mediterreanean, the slow return of oil production and export from Libya has already flooded markets with light-sweet crude pressuring the value of similar grades from Algeria and Kazakhstan.
From West Africa, some November-loading cargoes have yet to trade despite the emergence of December-loading programmes. And the temporary declaration of force majeure on Nigerian Bonny Light exports, which was lifted last Friday did little lift prices of other comparible grades from West Africa.
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