Benchmark U.S. oil futures dipped below $98 a barrel in electronic trading Wednesday after the American Petroleum Institute reported a surprisingly large rise in crude supplies. The API said supplies rose 5.9 million barrels for the week ended Oct. 25, according to sources. A Platts survey of analysts showed a forecast for a climb of 3.5 million barrels. The API data precedes the more closely watched Energy Information Administration report due later Wednesday. By late Wednesday morning in East Asia, December crude CLZ3 -0.51% had shed 58 cents, or 0.6%, to $97.62 a barrel, down from the $98.20 close on the New York Mercantile Exchange. “The [Nymex crude] market may have derived some support from bargain-hunting by traders viewing this market as undervalued at a discount of $10.81 per barrel to the Brent market,” said Citi analyst Tim Evans. “With a few more weeks to go before U.S. refineries begin ramping up output to a degree that rebalances the U.S. market, we see the [Nymex crude] weakness as likely to continue,” Evans said. A day earlier, oil ended in the red for the first time in four sessions, as a drop in U.S. consumer confidence dampened the outlook for energy demand.
Posted on: Wed, 30 Oct 2013 05:02:54 +0000
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