Crude price skids along with the stock market

Despite government figures showing a huge decline in the US stockpile of crude last week, the price of crude has dropped substantially today.

By mid-afternoon in New York the price of crude was down 1.3% at $97.25 a barrel, retreating from a six-week high after a report from the Energy Information Administration (EIA) showed that gasoline and diesel inventories rose sharply last week.

We have seen crude supplies drawn down substantially in the last few weeks, as a result of high run rates at refineries, but the big increase in stockpiles of the refined products suggests that the demand isn’t there at the moment to justify the high capacity utilisation at the refineries.

The EIA said that the crude stockpile dropped by 10.6 million barrels last week, while gasoline inventories increased by 6.72 million and distillate inventories jumped 4.54 million. The draw in crude was far larger than expected, but the builds in the refined products were also far higher than forecast, being some of the biggest seen all year. The stockpile of crude at Cushing, Oklahoma also increased.

Gasoline futures were down 0.96% in the afternoon in New York.

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.