WTI Crude Declines to Eight-Month Low on Ample Supply

Berita dari Jalatama, West Texas Intermediate crude fell to an eight-month low on surging output, ample supply and reduced fuel use in the U.S., the world’s biggest oil-consuming country.

Futures declined 0.7 percent. U.S. production climbed last week to the highest level in more than two decades, according to an Energy Information Administration report yesterday. Fuel supplies rose as usage slipped for a third week. Crude stockpiles were near a 30-year seasonal high.

WTI for February delivery dropped 67 cents to settle at $91.66 a barrel on the New York Mercantile Exchange. It was the lowest settlement since May 1. The volume of all futures traded was 15 percent higher than the 100-day average at 3:47 p.m. Futures have fallen 6.9 percent since the start of the year.

Brent for February settlement decreased 76 cents, or 0.7 percent, to end the session at $106.39 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures was 11 percent above the 100-day average.

WTI’s discount to Brent widened earlier as the Buzzard oil field in the North Sea was halted and gunmen blew up a pipeline in northern Iraq. Brent traded closed at a $14.73 premium to WTI, down from $14.82 yesterday. The spread widened to as much as $15.38, the most since Dec. 4, during trading.

(Source: Bloomberg)