Oil Down 1% To Near 7-Year Low On Glut, Dollar; Gasoline Jumps


NEW YORK, Dec 10 (Reuters) - Crude oil prices fell 1 percent on Thursday to new lows since 2009 as traders looked beyond a drop in U.S. crude stockpiles to focus on a global supply glut, while a stronger dollar weighed on commodities.

U.S. gasoline futures were the only bright spot on the petroleum complex, rallying on concerns over a refinery outage and possible cuts in production.

Futures of Brent and U.S. crude's West Texas Intermediate (WTI) struck near seven-year lows for a fourth day in a row in continued fallout from an OPEC meeting last week that abandoned price support measures. Unimpressive U.S. government inventory data from Wednesday added to the drag.

In its latest monthly report on Thursday, the Organization of the Petroleum Exporting Countries forecast that oil supply from countries outside the group - including United States and Russia - would fall by 380,000 barrels per day (bpd) next year, three times above previous expectations.

But OPEC also struck a bearish chord by saying its group output rose by 230,000 bpd in November to 31.7 million. It left unchanged its forecast for 2016 world oil demand growth at 1.25 million bpd.

OPEC's report "fell easily within (the) range of expectations", Jim Ritterbusch of Chicago-based oil consultancy Ritterbusch & Associates, explaining its lack of positive impact.

He also said the weekly drop of 3.6 million barrels in U.S. crude stocks announced by the government on Wednesday was seen as refiner de-stocking before the end of the U.S. tax year. "Additional U.S. commercial crude stock draws will be shrugged off", he added.


View Full Article

Copyright 2016 Thomson Reuters. Click for Restrictions.


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.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Manager- Retail Power Settlements & Accounting
Expertise: Accounting|Budget / Cost Control|Gas Plant Operations
Location: Houston, TX
Global Strategic Accounts Sales Director - Process Automation
Expertise: Sales
Location: Houston, TX
United States San Antonio: Account Manager
Expertise: Business Development|Sales
Location: San Antonio, TX
search for more jobs

Brent Crude Oil : $48.69/BBL 5.91%
Light Crude Oil : $47.05/BBL 5.32%
Natural Gas : $2.952/MMBtu 1.60%
Updated in last 24 hours