WTI Oil Near Six-Month Low

November 28, 2013

West Texas Intermediate traded near the lowest price in almost six months as crude stockpiles rose for a 10th week in the U.S., the world’s biggest oil consumer, Bloomberg reported on November 28. 

Futures were little changed in New York after declining 1.5 percent yesterday, the most in two weeks. Crude supplies climbed by 2.95 million barrels to 391.4 million, the highest level since June, Energy Information Administration data showed. Supplies were forecast to increase by 750,000 barrels, according to a Bloomberg News survey. Oil’s moving averages have formed a “death cross,” a bearish technical signal.

“Inventories continue to build, and that’s certainly at the forefront of investors’ minds,” said Jonathan Barratt, the chief executive officer of Barratt’s Bulletin in Sydney. “The oil market is suffering from no demand and oversupply.”

WTI for January delivery was at $92.31 a barrel in electronic trading on the New York Mercantile Exchange, up 1 cents, at 3:03 p.m. Singapore time. The contract slid $1.38 to $92.30 yesterday, the lowest close since May 31. The volume of all futures traded was about 68 percent below the 100-day average. Prices have dropped 4.2 percent in November.

Brent for January settlement gained 12 cents to $111.43 a barrel on the London-based ICE Futures Europe exchange. Prices are up 2.4 percent this month. The contract was at a premium of $19.13 to WTI, compared with $19.01 yesterday, the widest spread in more than eight months based on closing prices.

Copyright: Bloomberg, 2013