WTI Trades Near Two-Week High on Economy

West Texas Intermediate declined from the highest closing price in more than two weeks as Chinese economic data trailed estimates and the North Sea Buzzard oil field resumed.

WTI dropped as much as 0.7 percent, halting a three-day advance. China’s industrial output rose a less-than-forecast 9.2 percent last month, while export gains were at a 10-month low and imports dropped, weekend data show. Production at the Buzzard field, the largest contributor to the benchmark Forties crude grade, returned to approximately full pumping rates over the past two days, according to two people with knowledge of the matter who asked not to be identified.

“Weakness across commodity markets is taking oil prices lower after China report weaker-than-expected growth in trade and industrial output,” said Christopher Bellew, a senior broker at Jefferies Bache Ltd. in London.

WTI for July delivery was at $95.39 a barrel, down 64 cents, in electronic trading on the New York Mercantile Exchange at 12:41 p.m. London time. The volume of all futures traded was 16 percent below the 100-day average. Prices advanced $1.27, or 1.3 percent, to $96.03 a barrel on June 7, the highest close since May 21.

Brent for July settlement dropped 71 cents to $103.85 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade’s premium to WTI was at $8.47 a barrel, compared with $8.53 on June 7.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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