Oil spot price: WTI and Brent descending thus far today

on Dec 13, 2013
Updated: Oct 21, 2019
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_iNVEZZ.com: Friday, December 13th:_

**Crude oil**
West Texas Intermediate crude fell further today hitting a nine-day low, at 96.90, expanding Wednesday’s losses, which were logged on the back of a steep decrease in US crude oil inventories.
Brent oil has also been descending today falling to its lowest point since 25 November, at 108.26. These drops are happening ahead of the eventual reopening of oil terminals in Libya, which have been blockaded for the past few months by armed protestors. The head of the Al-Magharba tribe, who have organised the blockades in protest at perceived unfair distribution of oil wealth, on Tuesday said that exports could resume from 15 December. Protests disrupting output in recent times have significantly lowered Libya’s daily output to 250,000 barrels from 1.5 million.

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Head of Saxo Bank in Copenhagen Ole Hansen says that “there’s one word to describe the reason for Brent’s loss and that’s Libya. We’ve the potential of seeing supply from Libya coming back, though obviously that still needs to be confirmed, that is just removing a little” of Brent’s support.
According to Fitch rating agency WTI would average $90 per barrel in 2014. Fitch also forecasts crude oil spreads to remain volatile next year and discounted crude oil grades and cheap natural gas to continue to make US refined products exports very competitive.

Gasoline prices were seen this morning around 2.6328 following yesterday’s annual long-term energy forecast Outlook for Energy compiled by ExxonMobil, which stated that global demand for gasoline would remain unchanged from 2014 to 2040, but global demand for diesel would increase by some 75 percent during the same timeframe in order to meet the needs of trucks and other commercial transportation. The forecast also says that gasoline demand along with ethanol would remain unchanged mainly due to increased efficiency. Hybrid cars would account for 35 percent of all light-duty autos by 2040.

The congress of Mexico will put an end to the 75-year state oil monopoly and expects to raise as much as $20 billion in foreign investments a year. This act will be as significant as the North American Free Trade Agreement. The reform was approved by a two-thirds majority in a 353-134 lower-house vote yesterday.

Mexico is considered to be the second biggest unexplored crude oil area only behind the Arctic Circle. Supporters of the reform argue that Mexico could step into the top five crude oil exporting countries, while opponents think that it would give resource wealth to foreign investors.
Chief Mexico economist at Bank of America Carlos Capistran says that “the reform will energize Mexico’s economy”, and that “congress was able to pass a better-than-expected constitutional reform”.
**Natural gas**
Natural gas today is trading lower than yesterday’s seven-month high of 4.42 and is currently at 4.347. Buyers had been selling off to book profits after natural gas climbed over the 4.40 on cold weather demands in the United States. The price of natural gas gained 1.7 percent as Commodity Weather Group LLC predicted lower than usual temperatures in the eastern US through 16 December. The US Energy Information Administration said yesterday that natural gas inventories last week fell by 81 billion cubic feet.
Fitch’s near term expectations suggest that the natural gas market would continue to stabilize.
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