Oil Drops as Supply Points to Robust Inventories

Oil prices fell on Tuesday, extending losses into a third week, on worries over a supply glut and with U.S. inventory data expected to show another increase in crude stocks.
Brent for December delivery had fallen 87 cents, or 1.8 percent, to $46.67 a barrel by 11:16 a.m. EDT (1516 GMT), their lowest since mid-September, after settling the previous session down 45 cents.

U.S. crude dropped $1.02, or 2.3 percent, to $42.96 a barrel, having touched a nearly nine-week low of $42.58 earlier in the day.

Natural gas prices were up 2.3 percent at $2.11, having earlier broken below $2 for the first time since 2012. The contract for November fell nearly 10 percent in the previous session on forecasts of warmer winter weather.

The difference between the price of oil for immediate delivery and in a year’s time yawned to its widest in more than six months, reflecting investors’ perception that supply is likely to be far more widely available now than in the future.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza