Oil Holds Biggest Loss in 6 Weeks as U.S. Stockpiles Expand Glut
- Oil held the biggest loss in six weeks as rising U.S. crude stockpiles kept supplies at the highest level...
Oil held the biggest loss in six weeks as rising U.S. crude stockpiles kept supplies at the highest level in more than eight decades.
Futures dropped as much as 0.9 percent in New York after slumping 4 percent Wednesday, the most since Feb. 11. Inventories rose by more than three times what was projected in a Bloomberg survey, while imports last week increased to the highest since June 2013, Energy Information Administration data showed. Iraq will attend a meeting between major exporters in Doha next month, according to an oil ministry spokesman.
“It’s a globally oversupplied market,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “U.S. imports were very strong, and as a consequence, there was a very big build in crude inventories. On the positive side, we do seem to have a gradual, trending decline in production.”
Oil tumbled to a 12-year low this year before rebounding on speculation the global surplus will ease as U.S. production declined. Crude stockpiles at Cushing, Oklahoma, the delivery point for West Texas Intermediate and the nation’s biggest oil-storage hub, dropped for the first time in eight weeks, falling from a record, EIA data showed Wednesday.
WTI for May delivery slid as much as 34 cents to $39.45 a barrel on the New York Mercantile Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv and was at $39.52 at 8:29 a.m. Hong Kong time. The contract fell $1.66 to $39.79 Wednesday. Total volume traded was about 40 percent below the 100-day average. Front-month prices are up 0.2 percent this week, heading for a sixth weekly advance.
Brent for May Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 was 18 cents lower at $40.29 a barrel on the London-based ICE Futures Europe exchange. The contract declined $1.32 to $40.47 on Wednesday. The global benchmark crude was at a 77-cent premium to WTI.
--With assistance from Stephen Stapczynski To contact the reporter on this story: Ben Sharples in Hong Kong at bsharples@bloomberg.net. To contact the editors responsible for this story: Ramsey Al-Rikabi at ralrikabi@bloomberg.net.
By: Ben Sharples
©2016 Bloomberg News
Oil held the biggest loss in six weeks as rising U.S. crude stockpiles kept supplies at the highest level in more than eight decades.
Futures dropped as much as 0.9 percent in New York after slumping 4 percent Wednesday, the most since Feb. 11. Inventories rose by more than three times what was projected in a Bloomberg survey, while imports last week increased to the highest since June 2013, Energy Information Administration data showed. Iraq will attend a meeting between major exporters in Doha next month, according to an oil ministry spokesman.
“It’s a globally oversupplied market,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “U.S. imports were very strong, and as a consequence, there was a very big build in crude inventories. On the positive side, we do seem to have a gradual, trending decline in production.”
Oil tumbled to a 12-year low this year before rebounding on speculation the global surplus will ease as U.S. production declined. Crude stockpiles at Cushing, Oklahoma, the delivery point for West Texas Intermediate and the nation’s biggest oil-storage hub, dropped for the first time in eight weeks, falling from a record, EIA data showed Wednesday.
WTI for May delivery slid as much as 34 cents to $39.45 a barrel on the New York Mercantile Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv and was at $39.52 at 8:29 a.m. Hong Kong time. The contract fell $1.66 to $39.79 Wednesday. Total volume traded was about 40 percent below the 100-day average. Front-month prices are up 0.2 percent this week, heading for a sixth weekly advance.
Brent for May Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 was 18 cents lower at $40.29 a barrel on the London-based ICE Futures Europe exchange. The contract declined $1.32 to $40.47 on Wednesday. The global benchmark crude was at a 77-cent premium to WTI.
--With assistance from Stephen Stapczynski To contact the reporter on this story: Ben Sharples in Hong Kong at bsharples@bloomberg.net. To contact the editors responsible for this story: Ramsey Al-Rikabi at ralrikabi@bloomberg.net.
By: Ben Sharples
©2016 Bloomberg News