23.07.201403:45:05UTC+00Healthy stockpiles brings down WTI

Healthy stockpiles brings down WTI

Data showing stockpiles grew last week helped bring prices of West Texas Intermediate to back to back days of losses.

Futures for a barrel of the American benchmark with a delivery date in September went down to as low as $101.79 today after falling 0.6% or 60 cents on the New York Mercantile Exchange. It was trading near noon Sydney time at $102.05 per barrel. August’s last contract that expired yesterday finished down 17 cents at $104.42. Prices for front months have gained 3.7% for this year so far.

According to a report by the American Petroleum Institute, inventories of gasoline in the US, the largest oil consumer globally, expanded by 3.6 million barrels last week. Analysts surveyed by Bloomberg ahead of the release of official government data estimate that overall stockpiles will have likely increased by 1 million barrels during the same time. The Energy Information Agency will reveal their own report with inventory figures later on today.

Concerns over sanctions to be levied on Russia were also calmed by expectations of crude supplies being uninterrupted helping Brent, the European benchmark, decline. CMC Markets Chief Strategist Michael McCarthy says that, “Sanctions on energy supplies would be a real drag on the broader European economy, so it’s unlikely they will be introduced.”

Prices for a barrel of Brent similarly went down to $107.31 after losing 2 cents in London’s ICE Futures Europe exchange to hold a premium over WTI of $5.21. Spreads grew for the first time since the end of last week yesterday when it closed at $4.94.