U.S. Oil Falls To $100 On China Bond Concern, Stockpiles

Reuters

NEW YORK, March 11 (Reuters) - U.S. crude oil prices fell below $100 per barrel for the first time in a month as the potential for more Chinese corporate bond defaults and rising crude stocks in the United States raised concerns about the growth of oil demand.

Oil fell more than $1 after copper prices dropped to four-year lows on worries that other firms may follow Shanghai Chaori Solar Energy Science and Technology Co Ltd, which defaulted last week.

Further pressuring the American benchmark, U.S. crude stocks rose 2.6 million barrels last week, the American Petroleum Institute reported. That was more than the 2.2 million barrel build analysts had expected.

Traders will compare the industry group's data with the U.S. Energy Information Administration's official weekly inventory report due on Wednesday at 10:30 a.m. EDT (1430 GMT).

Brent oil futures rose on geopolitical risk as Western powers moved closer to issuing sanctions against Russia, and Libya's navy opened fire on a tanker after it had loaded oil at a rebel-held port.

Brent futures settled 47 cents higher at $108.55 per barrel. U.S. crude fell $1.09 to settle at $100.03 a barrel, its lowest settlement price since Feb. 11. The American benchmark fell further in post-settlement trade, holding near a low of $99.52 per barrel.

Brent's premium over U.S. crude settled $1.56 wider at $8.52, its widest settlement since Feb. 17 as the geopolitical risk posed by Ukraine and Libya drove traders to cover short positions. The spread narrowed to as tight as $5.44 on March 5, its tightest point in almost five months.


123

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
Project Engineer/Project Manager
Expertise: Project Management
Location: Baton Rouge, 
 
Sales Manager ADI
Expertise: Sales
Location: Pittsburgh, 
 
DCS Subject Matter Expert - Consulting / Sales Support
Expertise: Sales
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $53.92/BBL 2.79%
Light Crude Oil : $51.08/BBL 2.66%
Natural Gas : $3.3/MMBtu 3.22%
Updated in last 24 hours