Oil Down 2% on Profit-Taking, Dollar Rise

تم نشره في Thu 20 October / Oct 2016. 12:00 AM - آخر تعديل في Thu 20 October / Oct 2016. 06:56 PM
  • Oil Derreck - (Getty Images)

NEW YORK — Oil markets fell more than 2 per cent on Thursday, wiping out the previous day's gains on profit-taking and after a run-up in the dollar, which weighed on prices of commodities denominated in the greenback.

The front-month in US West Texas Intermediate (WTI) crude CLc1, which expires at Thursday's settlement, was off by USD1.15, or 2.2 per cent, at USD50.45. On Wednesday, it hit a July 2015 high of USD51.93.

WTI's more-active second-month position CLc2 slid USD1.20 to USD50.62.

The dollar index hit seven-month highs against basket of currencies and a three-month peak versus the euro EUR= after the European Central Bank kept interest rates unchanged.

On Wednesday, oil settled up about 2 per cent, with US crude closing at its highest level in 15 months, after a large and unexpected drawdown in US crude stocks.

The front-month in Brent crude LCOc1 was down USD1.29, or 2.4 per cent, at USD51.38 per barrel by 10:55 a.m. EDT (1455 GMT).

The US government has reported crude inventory draws in six of the past seven weeks, surprising analysts who usually expect a rise at this time of year from refinery maintenance.

In the latest week to Oct. 14, there was a drop of 5.2 million barrels, while refineries only ran at 85 per cent. Lower crude imports were responsible for the draws, data showed.

Energy monitoring Genscape added to US crude's improved outlook on Thursday by reporting a drop of nearly 1.25 million barrels in crude stockpiles the Cushing, Oklahoma delivery hub for WTI futures for the week to Oct. 18.

While oil markets were down in the latest session, they were still up about 13 per cent from Sept. 27 when the Organization of the Petroleum Exporting Countries announced its first planned output cut in 8 years to rein in a global glut that has halved prices from mid-2014 highs above USD100 a barrel.