US Crude Falls On China Slowdown, Equities Market Tumble

WTI gave back some of its gains from Thursday to settle down 68 cents at $96.64. It settled 59 cents higher on Thursday.

Brent's premium to U.S. oil narrowed to its tightest in more than two months early in the session, but eased back out by 76 cents to settle at $11.24 on spread trading.

"The tightening of the spread is going to get sold again," said Paul Smith, chief risk officer at Mobius Risk Group in Houston. "The market will start risk-adjusting the spread because we'll get a bunch of supplies on the market as we head into the refinery maintenance season."

Ultra Low Sulfur Diesel rose for the eighth day to reach its highest settlement price this year, up 6.09 cents to end the day at $3.1374. Analysts attribute the spike to sustained cold weather.

"The northern hemisphere weather is supportive of crude and products," said O'Grady.

Data from Thursday that showed China's factory sector shrank in January for the first time in six months continued to weigh on oil prices, suggesting a weak start for the economy in 2014.

With many market participants expecting the Fed to shave its stimulus by another $10 billion a month next week, investors will look to less risky assets such as U.S. bonds, expecting interest rates will begin to rise.


123

View Full Article

WHAT DO YOU THINK?


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.


Most Popular Articles