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Crude Oil Reverses Rally To Trade Near New Low

By:
Barry Norman
Updated: Aug 24, 2015, 22:00 UTC

Crude oil fell to a new low to trade in the $90 range after traders reversed the trend after the EIA inventory report on Wednesday. Crude oil is trading

Crude Oil Reverses Rally To Trade Near New Low

Crude Oil Reverses Rally To Trade Near New Low
Crude Oil Reverses Rally To Trade Near New Low
Crude oil fell to a new low to trade in the $90 range after traders reversed the trend after the EIA inventory report on Wednesday. Crude oil is trading at 90.84 this morning. Global oil prices eased on Wednesday to near 2-year lows. Investors were worried that news of a confirmed Ebola case in the US could affect global travel. Supporting prices was data showing a fall in US crude stockpiles in the latest week by the API report released late on Tuesday night. The immediate response to the industry inventory release was a rally based on the bullish report. The American Petroleum Institute on Tuesday said oil inventories last week fell 463,000 barrels, gasoline stocks dropped 2.5 million barrels and distillate stocks fell 1.8 million barrels. The official EIA inventory showed that crude stockpiles in the U.S. decreased by 1.36 million barrels to 356.6 million in the week ended Sept. 26.  Offsetting the EIA report was word that Saudi Arabia cut the official sales price of November forward crude oil sales to Asia. Brent crude fell by 0.5 per cent to $94.16. The spread between the two oils narrowed to $3.29 which continues to stress the markets.

Crude Oil(15 minutes)20141002051515

Brent Oil(15 minutes)20141002051650
OPEC’s oil supply jumped to its highest in almost two years in September, a Reuters survey stated, due to further recovery in Libya and higher output from Saudi Arabia and other Gulf producers in the face of sub-$100 per barrel oil prices. Oil options traders rushed to protect themselves against a deeper slump in global crude oil

Gasoline supplies decreased 1.84 million barrels to 208.5 million, the lowest level since November 2012, official data show. Stockpiles of distillate fuel, a category that includes diesel and heating oil, slipped 2.89 million barrels to 125.7 million. Gasoline increased 1.24 cents, or 0.5 percent, to settle at $2.4497. Gasoline pump prices were unchanged at $3.333 a gallon nationwide yesterday, the lowest level since February, according to AAA, the largest U.S. motoring group.

Gasoline(15 minutes)20141002051714

Natural Gas(5 minutes)20141002051604
Natural gas gained 4 points after taking a huge plunge on Wednesday. Natural gas is trading at 4.033 after traders sold off amass to book profits ahead of this week’s inventory release and a change in the weather forecast. U.S. natural gas futures stopped a four-day climb and fell almost 1 percent on Tuesday with changes in weather forecasts now calling for less cold temperatures and lower heating demand over the next two weeks.

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