West TX Oil Slides Below $95 as Refiners Slow Operations

West Texas Intermediate crude fell after a government report showed that U.S. refineries reduced operating rates as the peak driving season came to an end.

Refineries operated at 93.3 percent of their capacity last week, down 0.2 percentage point from Aug. 22, according to the Energy Information Administration. Refiners schedule maintenance for September and October as they transition to winter from summer fuels. The euro tumbled against the dollar after the European Central Bank cut rates and announced stimulus.

“The market is dominated by the fundamentals,” Mike Wittner, the head of oil market research at Societe Generale SA in New York, said by phone. “Refiners in the U.S. are going into maintenance, which is going to reduce demand for crude here and weigh on WTI. We could see WTI fall relative to Brent in the months ahead because of U.S. maintenance.”

Bloomberg

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