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Economy News _ Baghdad
Oil prices fell Thursday, September 17th, after rising strongly in the previous two sessions as concerns about weak demand re-emerged as producers in the Gulf of Mexico prepare to resume production after Hurricane Sally.
Brent crude futures fell 67 cents, or 1.6%, to $ 41.55 a barrel by 06:28 GMT, after rising 4.2% on Wednesday.
US West Texas Intermediate crude futures fell 70 cents, or 1.7%, to $ 39.46 a barrel, after jumping 4.9% on Wednesday.
Prices also fell due to a more than expected increase in stocks of US distillates, which include diesel and heating oil, raising concerns about fuel demand in the world's largest economy and consumer of fuel.
"The demand for distillates ... is a major concern," said Vivek Dahar, a Commonwealth Bank commodity analyst, in the note.
Yesterday, Wednesday, US Energy Information Administration data revealed that distillate stocks increased by 3.5 million barrels last week. The administration stated that the weekly demand for fuel decreased to 2.81 million barrels per day, down 27.2 percent compared to the same period last year.
Dahar said distillate stocks were at their highest levels for this time of year since at least 1991 and that the margins of US refiners for producing distillates were at their lowest levels in ten years.
Energy companies began returning crews to offshore oil platforms in the Gulf of Mexico after Hurricane Sally made landfall. Production of nearly 500,000 barrels per day of offshore oil in the Gulf of Mexico in the United States stopped just before the storm arrived.
Sources told Reuters that a committee of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as the OPEC + group, are meeting today to consider the market situation, but it is unlikely to recommend additional cuts to oil production despite the recent price decline.
- GURU HUNTER
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Join date : 2015-02-19
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