Crude price heads south as inventories climb

US light crude oil fell today, keeping the commodity on course for another monthly loss, following data from the US Energy Department that shows crude supplies at a four-month high.

The trend in recent weeks has been for expanding oil inventories, both for the US as a whole and for the price-important point of Cushing, Oklahoma.

A report released today by the Energy Information Administration, the statistical arm of the Energy Department, revealed the US stockpile of crude oil swelled by 4.09 million barrels last week, far higher than the 2.4 million increase that had been forecast by analysts. The rise, the sixth in a row, takes the total stockpile to 383.9 million barrels.

Such a sustained trend of increases in US supplies is a bearish sign, given the US is the world’s largest consumer of oil, and by mid-afternoon in New York, US light crude oil futures were trading down 1.56% at $96.70 a barrel.

Crude inventories at Cushing,Oklhaoma – the price settlement point for crude oil futures traded in New York – rose by 2.18 million barrels, reaching a two-month high of 35.5 million barrels.

There are signs that the run of inventory builds may be topping out, however. US crude output dropped by 43,000 barrels a day to 7.85 million, although this remains high historically and still exceeds imports.

Refinery utilisation began to pick back up last week, rising to 87.3%, as we head out of the autumn lull period. A drop in inventory levels of refined products suggests strong demand, which may see those refinery rates crank up higher in weeks to come.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.