U.S. crude oil traded above $69 per barrel on Thursday, hovering close to a nine-month low because the market worries concerning the provide and demand stability for the remainder of the yr.
The U.S. benchmark has shed greater than 5% this week, whereas the Brent world benchmark is down 7.2%. Crude oil futures have misplaced all positive factors for the yr.
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Listed here are Thursday’s power costs:
- West Texas Intermediate October contract: $69.45 per barrel, up 25 cents, or 0.36%. 12 months so far, the U.S. benchmark has fallen 3%.
- Brent November contract: $73.09 per barrel, up 39 cents, or 0.54%. 12 months so far, the worldwide benchmark has pulled again 5.2%.
- RBOB Gasoline October contract: $1.95 per gallon, little modified. 12 months so far, gasoline has declined 7%.
- Pure Fuel October contract: $2.16 per thousand cubic ft, up greater than 1 cent, or 0.61%. 12 months so far, gasoline has tumbled 14%.
“Oil demand is faltering in China, and right here in the USA the gasoline driving season has now ended,” Andy Lipow, president of Lipow Oil Associates, informed CNBC’s “Avenue Indicators” Thursday.
“We’re going right into a decrease demand interval so far as the buyer goes and to prime that off we’re going into the seasonal refining upkeep interval in the USA and Europe that’s going to lower crude oil demand,” Lipow mentioned.
In the meantime, there are worries that extra provide is coming to the market as demand slows. OPEC+ has plans to extend manufacturing in October, and output in Libya might ramp up as rival governments within the North African nation have reached an settlement to finish a dispute that disrupted provides.
However the selloff has raised hypothesis that OPEC+ will delay plans to convey extra barrels to market.
“There’s various components which might be actually working in opposition to OPEC over the subsequent few months,” Lipow mentioned. “They wish to see Brent crude oil costs at $85 to $90 per barrel to stability their budgets.”
