Crude Oil Price Remains Close To $80/B

The price of WTI remained close to the $80/B mark throughout the week although it fluctuated in tandem with other commodities markets. Data released by the Energy Information Administration (EIA) on 28 October had a bearish impact on crude prices, pushing them down to close at $77.46/B, their lowest point since mid-month, but news on 29 October from the US Department of Commerce showing that the US economy grew during the third quarter of 2009 for the first time in a year pushed the price of WTI back up to close at $79.87/B. The weak dollar and news of fewer jobless claims in the US also helped to strengthen WTI.

Writing in Barclay Capital’s Weekly Oil Data Review , Paul Horsnell, Head of Commodities Research, said: “WTI has finally broken out of the $65 to $75 straightjacket that held it for many months. However, there have been no explosive upside prices opened up; indeed, realistically, the limit of the current market debate is whether the new range is $70 to $80 or $75 to $85…So far the current quarter is playing out very much in line with the sequence of gradual transitions that has characterized the year so far.”

In its Weekly Petroleum Status Report , released on 28 October, the EIA said US commercial crude oil inventories increased by 0.8mn barrels in the week ending 23 October. At 339.9mn barrels, US crude oil inventories are above the upper boundary of the average range for this time of year. Total motor gasoline inventories increased by 1.7mn barrels and are above the upper limit of the average range. Distillate fuel inventories decreased by 2.1mn barrels and are above the upper boundary of the average range for this time of year. Total commercial petroleum inventories decreased by 1.6mn barrels and are above the upper limit of the average range for this time of year.

US crude oil imports averaged 8.9mn b/d, up 191,000 b/d from the previous week. Over the last four weeks, crude oil imports have averaged 8.9mn b/d, 880,000 b/d below the same four-week period last year. US crude oil refinery inputs averaged 14.2mn b/d, 133,000 b/d above the previous week’s average. Total products supplied over the last four-week period have averaged 18.7mn b/d, down by 3.0% compared to the similar period last year.

 Settlement Prices For Benchmark Crudes ($/B)

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