West Texas Intermediate fell for a
second day, extending the biggest drop in two weeks while Brent
futures advanced. Saudi Arabia’s crude shipments slid to a 15-
month low in December.
New York oil slipped as much as 0.4 percent. Data from the Federal Reserve showed U.S. industrial production unexpectedly shrank in January. Saudi Arabia exported 7.06 million barrels of crude a day in December, the least since September 2011, according to the Joint Organisations Data Initiative. Imports of oil from Iran fell at least 36 percent in January, the International Energy Agency said Feb. 13. Brent’s premium to WTI widened a second day as the London traded contract rose.
“Even with Iran exports down and Saudis cutting, there still seems to be plenty of crude around,” said Anthony Nunan, a senior adviser for risk management at Mitsubishi Corp. in Tokyo. “The market went up so much in the last month and a half that it was bound to come off. We have to correct downward from here. For WTI it will be tough to go to triple digits. We’ve hit a wall at $98.”
Crude for March delivery fell as much as 41 cents to $95.45 a barrel in electronic trading on the New York Mercantile Exchange and was at $95.61 at 1:24 p.m. Sydney time. The contract dropped $1.45 to $95.86 on Feb. 15, the lowest since Feb. 8 and the biggest loss since Feb. 4. The volume of all contracts traded was 3.5 percent below the 100-day average.
Brent for April settlement gained 9 cents to $117.75 a barrel on the London-based ICE Futures Europe exchange. The front-month European benchmark grade was at a premium of $21.61 to WTI futures, from $21.25 on Feb. 15. The gap expanded to $23.18 on Feb. 8, the widest since Nov. 26.
Source Bloomberg
New York oil slipped as much as 0.4 percent. Data from the Federal Reserve showed U.S. industrial production unexpectedly shrank in January. Saudi Arabia exported 7.06 million barrels of crude a day in December, the least since September 2011, according to the Joint Organisations Data Initiative. Imports of oil from Iran fell at least 36 percent in January, the International Energy Agency said Feb. 13. Brent’s premium to WTI widened a second day as the London traded contract rose.
“Even with Iran exports down and Saudis cutting, there still seems to be plenty of crude around,” said Anthony Nunan, a senior adviser for risk management at Mitsubishi Corp. in Tokyo. “The market went up so much in the last month and a half that it was bound to come off. We have to correct downward from here. For WTI it will be tough to go to triple digits. We’ve hit a wall at $98.”
Crude for March delivery fell as much as 41 cents to $95.45 a barrel in electronic trading on the New York Mercantile Exchange and was at $95.61 at 1:24 p.m. Sydney time. The contract dropped $1.45 to $95.86 on Feb. 15, the lowest since Feb. 8 and the biggest loss since Feb. 4. The volume of all contracts traded was 3.5 percent below the 100-day average.
Brent for April settlement gained 9 cents to $117.75 a barrel on the London-based ICE Futures Europe exchange. The front-month European benchmark grade was at a premium of $21.61 to WTI futures, from $21.25 on Feb. 15. The gap expanded to $23.18 on Feb. 8, the widest since Nov. 26.
Source Bloomberg
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