Oil spot price: Crude down on rise in US stocks

on Nov 27, 2013
Updated: Oct 21, 2019

_iNVEZZ.com: Wednesday, November 27th:_

**WTI and Brent**
The American Petroleum Institute yesterday released its latest reading on US crude oil inventory, a number which produced a slump in crude oil prices, by almost a dollar to below 93.50 and with the descent continuing. The API calculates that crude inventories in the United States, the world’s largest oil consumer, rose by 6.9 million barrels last week.

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The US Energy Information Administration is scheduled to release the official data on Crude Oil Inventories for the past week at 15.30 UTC today. According to a Bloomberg survey, stocks are expected to increase by 750,000 barrels. The very large discrepancy between the EIA and API numbers may be explicable in part by timing and the process of refining.

The market is expected to be sluggish after the EIA inventory is released, with most traders logging off earlier in the day for the Thanksgiving holiday – the year’s biggest weekend for petrol-powered travel in the United States. Most market participants won’t be back in front of their monitors until Monday next week.
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Expectations that the Organization of Petroleum Exporting Countries will keep its production quota unchanged at its meeting in Vienna next week have today supported an upwards movement in Brent crude to 110.97. OPEC, which is responsible for about 40 percent of global crude production, will confirm output of 30 million bpd, according to a Bloomberg survey of 20 analysts and traders. Only two respondents were picking a cut. OPEC produced 30.62 million bpd in October, up from 30.58 million in September.

Continuing civil unrest in Libya is generating more supply fears as regards a rising oil demand in the Northern Hemisphere winter. Libyan oil workers are currently on strike in Benghazi.
The spread between West Texas Intermediate and Brent is currently $18.50
The US Department of Labor reported today that Unemployment Insurance Initial Claims had fallen to 316,000 last week from the prior 323,000, easily beating expectations for 330,000.
US Durable Goods Orders m/m logged a two percent fall in October, while Core Durable Goods
In breaking news, light crude oil has fallen 0.7 percent, to be below 92.60 per barrel, in the past few hours amid rumours that Iranian naval forces have detained two ships sailing under the Saudi flag near the Iranian town of Bushehr, where Iran maintains a nuclear power plant. Nine people have reportedly been arrested.

**Natural gas**
Natural gas prices are trading slightly below yesterday’s high of $3.879 per 1,000 cubic feet – the highest price since 21 June. The US National Forecast Centre’s prognosis for the coldest winter in many years is supporting a lift in natural gas prices, though earlier today the price slipped by nine pips on month-end profit taking ahead of the Thanksgiving holiday. Heating oil also fell slightly earlier today, following a strong climb earlier in the week, to be currently at 3.0415.
The EIA is due to release Natural Gas Storage at 17.00 UTC today. Expectations are for contraction by 11 billion cubic feet.
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