Brent Steady, US Crude Down Ahead Of Contract Expiry

He also cited the widening U.S. refining premium, or crack, for gasoline, adding: "I'd be careful about being short gasoline."

The gasoline crack <CL-RB1=R> widened to more than $13.50 a barrel, the highest in 2-1/2 months.

While a global glut was weighing on crude in general, Brent's outlook on Thursday was less bearish compared with WTI, after data the previous day showed an eighth straight week of builds in U.S. crude stockpiles.

WTI's weakness has been also demonstrated by the growing discount between the front month to forward contracts as traders stored more crude in the hope of delivering at higher prices later.

On Thursday, the discount, or contango, for December WTI versus December 2016 WTI <CLZ5-Z6> reached a record wide $8 a barrel.

On Wednesday, December WTI's contango to January 2016 <CLZ5-F6> hit a record high of $1.43, Reuters data showed.

December WTI expires on Friday, putting the market at further risk of testing August's sub-$40 lows.


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