Sep 20, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin

Crude Rebounds From Five-Month Low as U.S. Fuel Supplies Decline

November 6, 2013

(For Bloomberg fair value curves, see CFVL <GO>.)


Nov. 6 (Bloomberg) -- West Texas Intermediate crude rebounded from the lowest level in five months as U.S. gasoline demand rose to the most since July, trimming fuel inventories.

Futures advanced as much as 2 percent. Consumption of the motor fuel climbed 2.6 percent last week as regular gasoline at the pump slid to the lowest price since December on Nov. 4, government data show. Gasoline supplies decreased 3.76 million, more than nine times the 400,000-barrel drop forecast by analysts in a Bloomberg survey. WTI also gained as technical indicators showed recent losses are excessive.

"The shocker number is the draw in gasoline," said Rich Ilczyszyn, chief market strategist and founder of in Chicago. "Demand is picking up, and it’s supportive for the market. The market is definitely responding to the products numbers. Crude oil is oversold."

WTI for December delivery rose $1.71, or 1.8 percent, to $95.08 a barrel at 1:26 p.m. on the New York Mercantile Exchange. The contract dropped to $93.37 yesterday, the lowest settlement since June 4. It traded at $94.41 before the report. The volume of all futures traded was 1.4 percent below the 100- day average.

Brent for December settlement increased 27 cents, or 0.3 percent, to $105.60 a barrel on the London-based ICE Futures Europe exchange. It slid to the lowest level since July 2 yesterday. Volume was 13 percent above the 100-day average. The European benchmark crude was at a premium of $10.52 to WTI, compared with $11.96 yesterday.


Gasoline Climbs


Gasoline futures rallied as much as 2.2 percent to $2.572 a gallon on the Nymex after settling yesterday at the lowest level since December 2011.

Consumption of the motor fuel increased to 9.29 million in the seven days ended Nov. 1, the most since July 5, the Energy Information Administration, the Energy Department’s statistical arm, reported today. It was the second weekly advance. Gasoline supply decreased for a fourth week to 210 million barrels, the least since Nov. 23, 2012.

Previous 1 2 3 ... Next

See Comments

RELATED TOPICS: Power Hour - Business

Log In or Sign Up to comment


No comments have been posted



Receive the latest news, information and commentary customized for you. Sign up to receive the AgWeb Daily eNewsletter today!.

Enter Zip Code below to view live local results:
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by|Site Map|Privacy Policy|Terms & Conditions