Oil Continues Downward Trend As Supplies Remain Strong

West Texas Intermediate crude fell from a two-week high after an industry group was said to report an increase in U.S. inventories.

WTI slid for the first time in three days. The American Petroleum Institute reported yesterday that supplies rose 3.3 million barrels last week, according to Bain Energy. The Energy Information Administration will release its inventory data today. Brent climbed as Libya halted its biggest oil field.

“The build in the API report was quite big,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “If we get a confirmation from the EIA, I won’t be surprised if WTI starts to give up more of yesterday’s gains. Brent is focusing on reports that Libya has reduced production.”

WTI for October delivery slid 17 cents to $94.71 a barrel at 9:03 a.m. on the New York Mercantile Exchange. The volume of all futures traded was about 6.8 percent above the 100-day average for the time of day.

Brent for November settlement advanced 22 cents to $99.27 a barrel on the ICE Futures Europe exchange. Volume was 3 percent above the 100-day average. The European benchmark crude was at a premium of $5.61 to WTI on ICE for the same month. It closed at $5.24 yesterday.

Analysts surveyed by Bloomberg are expecting the EIA, the Energy Department’s statistical arm, to report a decrease of 1.5 million barrels in U.S. crude stockpiles.

via Bloomberg

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