India's International Olympic Committee buys first USA sweet crude for end-October delivery

Crude Oil
Daily October West Texas Intermediate Crude Oil

16 August, 2017

Oil prices settled little changed on Tuesday after slumping to three-week lows as the USA dollar climbed and signs of weaker petroleum demand in China weighed the market down for a second day.

September West Texas Intermediate crude oil CLU7, +0.34% fell 4 cents, or less than 0.1%, to settle at $47.55 a barrel on the New York Mercantile Exchange-off the day's low of $47.02.

"Oil futures have become lodged in a tight price range this month as traders await the autumn maintenance period that typically brings with it a seasonal drop in refinery demand and resulting build in crude stocks", he said in an emailed report.

"While these producers have tried to limit their oil output, United States shale oil continues to rise", said Fawad Razaqzada, market analyst at futures brokerage

As the news of higher production continues to hit the market, both WTI and Brent benchmarks have been giving up some of the gains. Prices for Brent had settled Monday at their lowest since late July.

U.S. crude inventories fell by 9.2-million barrels in the week to August 11 to 469.2-million, industry group the American Petroleum Institute said on Tuesday.

Brent Crude
Daily November Brent Crude Oil

Most analysts are expecting figures of 3.179 million drop in crude stocks in the upcoming announcements while a total of 1.527 million barrels decline in gasoline inventories and shrink the total supplies by 620,000 barrels.

On the balance situation, a survey of analysts from S&P Global Platts revealed expectations of a 3.6 million drop in USA crude oil inventories and a 400,000 barrel decline for gasoline.

Concerns over growing US shale-oil production weighed on the market, but prices found some support from the latest forecasts calling for a decline in weekly USA crude supplies.

September natural gas NGU17, -0.82% declined by 2.4 cents, or 0.8%, to $2.935 per million British thermal units.

The report also showed that the number of drilled, but uncompleted wells, or DUC, climbed by 208 in July from June to 7,059. Crude supplies at Cushing, Okla., the delivery point for WTI and the biggest US oil-storage hub, rose 700,000 bbl last week, according to a Bloomberg-compiled forecast.

Crude oil prices fell slightly in Asia on Monday with investors cautious on demand ahead of weekly supply gauges from he US, though demand hopes picked up with better than expected second quarter GDP from Japan.

Flash Flood warning issued for Imperial County
NWS says flash flooding is expected to begin shortly and that some of the locations that will experience flooding include Genesee. Inland temperatures, meanwhile, are expected to be in the 90's today, and will approach 100 in some valley areas.

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