WTI Crude Rebounds From 10-Week Low

Oil rebounded from the lowest level in 10 weeks as traders speculated recent declines may have been excessive, while a North Sea pipeline system remained shut after a platform leak.

West Texas Intermediate advanced as much as 0.6 percent, and Brent futures as much as 0.9 percent. The Brent pipeline system was closed for a fourth day after an oil leak was discovered March 2 on the Cormorant Alpha platform, according to Abu Dhabi National Energy Co. (TAQA) PJSC, the operator known as Taqa. U.S. crude stockpiles probably increased for a seventh week, the longest stretch since May, a Bloomberg News survey showed before Energy Department data tomorrow.

“It’s worth keeping an eye on developments at Cormorant Alpha since any prolonged disruption in the North Sea would support Brent,” said Andrey Kryuchenkov, an analyst at VTB Capital in London who predicts that Brent will trade in a range of $109 to $112 a barrel this month.

WTI for April delivery rose as much as 58 cents to $90.70 a barrel in electronic trading on the New York Mercantile Exchange and was at $90.65 at 1:24 p.m. London time. The volume of all futures traded was 28 percent below the 100-day average. The contract fell 56 cents to $90.12 yesterday, the lowest close since Dec. 24.

Brent for April settlement on the London-based ICE Futures Europe exchange gained as much as 97 cents, or 0.9 percent, to $111.06 a barrel. The volume of all futures traded was 38 percent above the 100-day average. The European benchmark grade was at a $20.14 premium to WTI, widening for a fourth day.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell