West Texas Intermediate oil fell to a two-week low on concern the shutdown of the Coffeyville refinery in Kansas may reduce crude demand. Brent advanced as the European Union agreed to new sanctions on Russia.
The September WTI contract dropped as much as 1.3 percent, narrowing its premium to October futures. CVR Refining LP shut the 115,000-barrel-a-day plant following a fire in an isomerization unit, the company said. Brent erased losses as the EU said it would curb Russian banks’ access to capital markets and restrict the export of oil-production equipment.
“The Kansas refinery fire is throwing pressure on WTI and strengthening products,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. “It’s an important refinery because it’s linked to Cushing.”
WTI for September delivery slid 70 cents, or 0.7 percent, to $100.97 a barrel at 11:10 a.m. on the New York Mercantile Exchange after touching $100.37, the lowest intraday level since July 16. The volume of all futures traded was 37 percent above the 100-day average.
Brent for September settlement gained 5 cents to $107.62 a barrel on the London-based ICE Futures Europe exchange. Volume was 3.6 percent above the 100-day average. Earlier it fell to $107.13. The European benchmark reached a premium of $7.09 to WTI on ICE, the biggest since July 7.
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