Thursday, October 31, 2013

REPOST: Oil futures fall below $96 on ample U.S. supply

Status of supplies of crude in US has been affecting the prices of crude oil per barrel. Read more from this MarketWatch.com article:
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NEW YORK (MarketWatch) — Oil futures dropped below $96 a barrel on Friday, as ample U.S. supplies of crude continued to put downward pressure on prices.
Crude oil for December delivery CLZ3 -0.92%  fell 77 cents, or 0.8%, to $95.61 a barrel in electronic trading on the New York Mercantile Exchange.
The contract declined 0.4% on Thursday. Compared with the close of $102.33 a barrel for the front-month contract at the end of September, prices lost 5.8% for October.
The broader slide has come as stockpiles have risen for six weeks in a row, according to the U.S. Energy Information Administration. In its latest report, issued Wednesday, it said crude supplies rose 4.1 million barrels in the week ended Oct. 25. Analysts polled by Platts expected a climb of 3.5 million barrels.
The decline in U.S. oil futures is good news for consumers since it should depress gasoline prices at the pump.Read: Goodbye, $100 oil. Hello, $3 gasoline.
December Brent crude UK:LCOZ3 -1.47% , the European benchmark, fell $1.24, or 1.2%, to $107.60 a barrel on Friday on ICE Futures. The gap between Nymex and Brent crude prices is around $12 a barrel, with Brent getting a boost from ongoing supply outages in Libya.
While Nymex crude prices continued “to be weighed down by higher refinery maintenance in the U.S. and the associated build in crude stocks seen there in the last two weeks, the Libyan supply situation is rather more bullish on the other side of the Atlantic,” wrote analysts at JBC Energy GmbH. “With supply decimated, the Libyan government’s latest efforts to find a solution for the problems have so far been met with indifference.”
In the corporate sector, oil major Chevron Corp. CVX -0.59%  reported a decline in third-quarter profit primarily due to lower margins for refined products. 
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