Oil Prices Post Losses
West Texas Intermediate (WTI) and Brent crude oil futures retreated on the first trading day of the week.
The November WTI contract shed 47 cents Monday, settling at $53.31 per barrel. The light crude marker peaked at $54.03 and bottomed out at $52.71.
Also declining Monday was December Brent, which lost 46 cents to close at $58.96 per barrel.
Tom McNulty, Houston-based managing director with Great American Group, pointed out that oil prices are declining amid upward supply and demand trends in the United States. Citing American Petroleum Institute figures for September, he pointed out that U.S. petroleum consumption rose 3.5 percent year-on-year to 20.8 million barrels per day (bpd) and domestic oil production set a 12.4 million-bpd record. Moreover, he noted that U.S. oil exports climbed by 100,000 bpd from August to September, reaching 8.2 million bpd last month.
“And WTI traded down again today,” said McNulty. “Why? Because there is plenty of oil that can be produced quickly to serve this current demand.”
Moreover, lackluster global economic expectations have weighed down crude futures. As Bloomberg reported earlier Monday, oil prices have fallen nearly 20 percent overall since April of this year.
Like crude oil, reformulated gasoline (RBOB) posted a loss Monday. November RBOB settled at $1.61 per gallon, reflecting a nearly two-cent decline.
Henry Hub natural gas for November delivery finished the day eight cents lower at $2.24.
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