Thursday, July 10, 2014

WTI Crude Heads for Record-Long Slump as Supplies Expand

West Texas Intermediate crude headed for a record-long slump as government data showed an expansion in supplies where the oil is stored, and demand for gasoline weakened. Brent, Europe’s benchmark, was little changed in London. Futures declined as much as 0.7% in New York. A lower closing price would be the 10th in a row, marking the longest retreat since the contracts began trading in 1983, New York Mercantile Exchange data show. Crude stockpiles rose the most since January at Cushing, Oklahoma. Gasoline inventories increased and consumption fell, according to Energy Information Administration figures.
OPEC predicted that demand for its crude will decline in 2015 to the lowest in six years. WTI for August delivery dropped as much as 74 cents to $101.55 a barrel in electronic trading on the New York Mercantile Exchange and was at $101.96. The contract slid $1.11 to $102.29 yesterday, the lowest close since May 16. The volume of all futures traded was about 20% above the 100-day average for the time of day. Crude inventories at Cushing, Oklahoma, the delivery point for WTI and the biggest U.S. oil-storage hub, climbed by 447K barrels to 20.9 million. Supplies nationwide dropped by 2.4 million barrels to 382.6 million.

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