Crude oil declined as the increase in US oil inventory was much higher than expected. Moreover, disappointing US housing data also weakened sentiment. The front-month contract for WTI crude oil slipped to a 2-week low of 101.2 before settling at 101.44, down -0.30% while the Brent crude contract lost -0.15% during the day.
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Crude Price Dropped as US Inventory Soared. RNBZ Higher Rates For Another Month
Crude oil retreated in US opens although US initial jobless claims came in less than expected. Initial jobless claims in the week ended April fell to 600K from an upwardly revised 332K in the prior week. The market had anticipated a reading of 320K. Investors were also concerned about the disappointing China trade data and OPEC’s downward revision of the demand of its output.
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OPEC Revised Lower Demand for Its Oil
The price of US WTI crude oil rose above the $100 a barrel mark for the first time in 2014 following a rally in stock markets yesterday, triggered by the US unemployment rate falling to a 5 year low.
Latest WTI Oil Price
US Light crude oil futures for March 2014 delivery closed yesterday’s session at $100.13 a barrel on the NYMEX, or 2.3 percent higher. Meanwhile, European Brent oil futures closed up 2.2 percent at $109.52 a barrel on the ICE Futures Exchange.
US Unemployment Rate
The US economy added just 113,00 new jobs in January 2014, according to figures released on Friday, fuelling fears that the recovery in the jobs market appeared to have stalled, however unemployment in the United States dropped slightly that month, falling one tenth of a percent to 6.6 percent which is the lowest jobless rate in the US since 2008.
“The emerging market concerns and other flagging data will undermine the recent weather related support for crude and refined products,” said The Kilduff Report, edited by Michael Fitzpatrick.
With chilly temperatures across the middle of the US and into the North East, demand for heating oil remains strong. That should boost refinery demand for crude oil.
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WTI oil price rises above $100 a barrel for the first time in 2014