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Oil Falls Below Two-Month Low

November 13, 2015 at 22:48 by Vladimir Vyun

Crude oil slid today amid persisting concerns about oversupply on the market. Prices fell to the lowest level in more than two months.

The International Energy Agency released a bearish report today, promising falling demand and record global stocks. It said:

OECD commercial inventories rose counter-seasonally by 13.8 mb to stand at a record near-3 billion barrels by end-September. The pace of global stockbuilding slowed during the third quarter to 1.6 mb/d from 2.3 mb/d in the second quarter but remained significantly above the historical average.

The report also stated:

Momentum will ease towards its long-term trend as recent props – sharply lower oil prices, colder-than-year-earlier winter weather and post-recessionary bounces in some countries – are likely to give way.

Baker Hughes reported that the number of US oil rigs increase by 2 this week. It was the first increases in nearly three weeks.

Yesterday, data from the US Energy Information Administration showed that US inventories of crude swelled by 4.2 million barrels to 487.0 million last week, staying near the record level for this time of year. The actual increase was more than four times bigger than the 0.8 percent gain predicted by analysts.

December futures for crude oil declined 2.44 percent to $40.73 per barrel as of 22:45 GMT on NYMEX today. Brent crude dropped 1.02 percent to $43.61 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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