Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

U.S. Oil Falls More Than $2 On Stocks Rise, SPR Sale

change text size

Reuters

NEW YORK, March 12 (Reuters) - U.S. crude oil fell by more than 2 percent on Wednesday, its biggest drop in two months, after the United States announced unexpected plans for a test release of strategic oil reserves while weekly data showed a big rise in crude stockpiles.

European benchmark Brent prices slipped modestly, widening the closely watched Brent/WTI spread for a third day, but the main focus was on the U.S. contract after a double dose of bearish supply news.

The U.S. Department of Energy surprised markets by announcing plans to sell up to 5 million barrels of crude oil from the Strategic Petroleum Reserves (SPR) to test the capabilities of the nation's emergency stockpile.

U.S. Energy Information Administration (EIA) data showed overall crude stocks in the world's largest oil consumer rose by 6.2 million barrels in the week to March 7, nearly triple expectations, as more refiners shut for seasonal work at the peak of the spring maintenance season.

"We are heading lower on this (EIA) report and the SPR release," said Matt Smith, analyst at Schneider Electric in Louisville, Kentucky. "It's only 5 million barrels, but any further supply coming to the market is going to have a bearish impact."

Brent crude fell as well, though not by as much, with support from geopolitical risk in Libyaand signs the European Union may impose tougher sanctions on Russia.

U.S. crude settled $2.04 lower at $97.99 a barrel, below the 50-day moving average of $98.32 by midday.


1234

View Full Article

Copyright 2014 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

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.


Most Popular Articles
From the Career Center
Jobs that may interest you
Distributor Account Manager - Shell Lubricants
Expertise: Sales and Marketing
Location: Houston, TX
 
Customer Strategy & Planning Analyst
Expertise: Accounting or Finance, Sales and Marketing
Location: Houston or Calgary , TX
 
Sales Specialist 1
Expertise: Sales and Marketing, Technical Sales
Location: Houston, TX
 
search for more jobs