Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oil Prices Slide After IEA Says Global Crude Supplies Hit Record

Published 09/13/2018, 09:52 AM
Updated 09/13/2018, 09:52 AM
© Reuters.  Oil Prices Slide

© Reuters. Oil Prices Slide

Investing.com - Crude prices declined on Thursday after monthly data from the International Energy Agency revealed production among OPEC members surged in August, pushing global inventories to a record.

Brent crude futures, the benchmark for oil prices outside the U.S., dipped 71 cents, or 0.9%, to $79.06 a barrel by 9:50AM ET. Wednesday’s settlement for the global benchmark was the highest since May.

Meanwhile, New York-traded WTI crude futures dropped $1.04, or 1.5%, to $69.33 a barrel, a day after marking the highest settlement since July 20.

The International Energy Agency, in a closely followed monthly report, said daily crude-oil output in the Organization of the Petroleum Exporting Countries climbed in August by 420,000 barrels per day (bpd), to average 32.63 million a day.

That output more than made up for an expected decline in Iranian supply due to extant and pending U.S. economic sanctions.

The August report also signaled that global supplies hit a record of 100 million barrels a day.

In other energy trading, gasoline futures fell 1% to $2.016 a gallon, while heating oil shed 0.4% to $2.247 a gallon.

Market participants have been watching Hurricane Florence, which was downgraded over the Atlantic Ocean late Wednesday to a Category 2 storm.

Even so, it is expected to remain an “extremely dangerous major hurricane” when it nears the coast late Thursday and Friday, according to the National Weather Service.

The storm, which is on track to disrupt the Carolinas and Virginia, has the potential to cause disruptions to the flow of fuel through the key Colonial Pipeline, which moves gasoline and diesel from Houston through states in the Southeast, including the Carolinas, to Linden, N.J.

Latest comments

"Global inventories to a record" ??
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.