US WTI crude oil futures opened Thursday’s trading session above $91 a barrel, a day after its biggest price gain in five months as US oil inventories fell unexpectedly lower with mixed data from the US API and EIA.
Latest WTI Oil Price
US Light crude oil futures for June 2013 delivery was trading at $91.58, 09:48 GMT this morning in electronic trading on the NYMEX.
Mixed Data from API & EIA
US crude oil inventories came out mixed with the API (American Petroleum Institute) reporting that US crude oil stocks had fallen by 845,000 barrels to 383.2 million barrels for the week ending April 19th.
Meanwhile, the US EIA (Energy Information Administration) reported that US crude oil inventories rose by 947,000 barrels last week, which was well below market calls for a gain of 1.513 million barrels and sparked yesterday’s rally in energy markets and oil prices moved higher. Total US crude oil inventories stood at 388.6 million barrels as of last week.
Brent and WTI Spread
On the ICE Futures Exchange, Brent oil futures for June 2013 delivery rose to $101.63 a barrel, with the spread between the Brent and US WTI crude contracts narrowing to around $10 a barrel.
Goldman Sachs yesterday cut its three month outlook for Brent oil prices to $100 a barrel from $110 and lowered its 2013 forecast to $105 from $110, citing concerns over Chinese oil demand prospects.
“Commodity returns have dropped sharply so far in April as weaker-than-expected macroeconomic data releases in the US, Europe and China furthered concerns around global economic growth,” New York based analyst Samantha Dart said in the report. “The negative sentiment in the market has weighed on cyclical commodity prices in particular.”
China’s demand for oil slowed down significantly from January to March, and the bank recently cut its outlook for the country’s economic growth in the second quarter, according to the report.
“Our China economists see near-term headwinds to real growth improvement continuing,” the bank added.
Continued here:
WTI crude oil price jumps above $91 as US oil inventory stocks fall
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