Back to FT Energy Source homepageOil fell on Thursday as the market continued to digest US government data showing a large increase in petrol stocks, increasing worries that consumer demand was flagging and the energy markets had been overbought.
Crude sagged as investors across most asset classes adopted defensive stances after closely-watched US non-farm payrolls data showed unemployment in the world’s leading economy fell more than expected.
Data on Wednesday from the Energy Information Agency, the statistical arm of the US Department of Energy showed crude inventories fell for the fourth consecutive week but this was overshadowed by the sharp rise in petroleum products.
Nymex August West Texas Intermediate, the US benchmark, fell $1.40 to $67.87 a barrel. ICE August Brent fell $1.35 to $67.43 a barrel.
“We see prices as being likely to stay largely within the $65-75 range in the current quarter, with brief forays possible either side of that range, and have adjusted price forecasts to reflect that core view,” said Barclays Capital.
“The main dynamic within the US data recently has been one whereby the overhang of crude oil inventories is being turned into a greater overhang of oil product inventories. Indeed, that dynamic has been the reason why we have remained wary of long exposure to product cracks in recent weeks and have preferred long crude but short products”.
Base metals meanwhile were broadly weaker ahead of the US data. Copper fell 2.9 per cent to $4979 per tonne and aluminium was down 1.9 per cent to $1633 per tonne.
Gold slipped as the dollar strengthened and reduced the relative value appeal of bullion. Spot gold lost 1.4 per cent to $929.10.
