Crude oil traded little changed around $77 a barrel before a report forecast to show that higher than normal crude inventories grew last week in the U.S. The U.S. Energy Department will probably report tomorrow that stockpiles grew by 1.5 million barrels in the week ended Nov. 20, according to a Bloomberg survey. Analysts were split over the change in supplies of distillate fuels such as heating oil and diesel, which are 28 percent above the seasonal average.
“At least until the end of the year we see $80 as the top of the range,” said Tobias Merath, a commodity analyst at Credit Suisse Group in Zurich. “What’s limiting the potential in the short term is the supply glut in the distillate market.” Crude oil for January delivery traded for $77.52 a barrel on the New York Mercantile Exchange, 4 cents lower, as of 11:16 a.m. London time. Oil, which rose as high as $79.92 yesterday, has failed to close above $80 since Nov. 4. Futures have gained 73 percent this year. Oil was capped by strengthening in the U.S. dollar, which often limits the appeal of commodities for hedging inflation. The dollar traded at $1.4946 per euro at 11:15 a.m. in London, from $1.4961 yesterday in New York.....Read the entire article.
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2 comments:
The distillate stocks are just killing refining. If only everyone would fly somewhere for Thanksgiving, we could see some price imporvements ;)
Man, I think they would if they could. I talked to someone in the airline industry and they claim holiday travel weekends will be fine as far as volume, people are not giving up those weekends. It's the rest of the time that has died.
Thanks for posting A Barrel Full!
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