US Crude Climbs on Surprise Drop in US Gasoline Stocks

Reuters

NEW YORK, Nov 6 (Reuters) - U.S. crude futures rose by more than $1 a barrel on Wednesday, rebounding from four-month lows on unexpectedly large falls in U.S. fuel supplies.

The U.S. benchmark's discount to European Brent crude narrowed by $2 to a low of just under $10 during the session.

Brent reversed gains in late trading to finish lower, after finding support for most of the session on concerns about prolonged supply outages in Libya as the peak northern hemisphere winter heating season looms.

"We were up strong all day. really bought the market after the Department of Energy report, so probably some money got taken off the table," said Stephen Schork, editor of the Schork Report in Villanova, Pennsylvania.

December Brent fell even as contracts for next year largely gained, dragging the market into a contango structure for the first time since June and suggesting that weeks of weakness in U.S. physical crude oil markets is spilling over into the European and global markets.

"It speaks to a market eyeing a well-supplied situation at the moment," said John Kilduff, a partner at Again Capital LLC in New York.

"It seems that refiners, particularly in Europe, are struggling and it looks to continue. That's a very bearish signal."


1234

View Full Article

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
DCS Subject Matter Expert - Consulting / Sales Support
Expertise: Sales
Location: Houston, TX
 
Process Automation Sales Engineer
Expertise: Sales
Location: Houston, TX
 
TIC Strategic Accounts Manager
Expertise: Sales
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $55.47/BBL 0.69%
Light Crude Oil : $52.48/BBL 0.30%
Natural Gas : $3.41/MMBtu 0.29%
Updated in last 24 hours