NEW YORK: Crude oil futures edged lower yesterday after a report showed declining US petrol demand in the world’s top oil consumer and a build at the key Cushing, Oklahoma storage hub.
In its weekly report, the US Energy Information Administration said US crude oil stocks fell by a greater-than-expected 2.07 million barrels last week, but inventories at Cushing, the delivery point for US crude futures, rose 508,000 barrels. The four-week average for petrol demand fell by 1.4 percent year-over-year.
“The larger-than-expected build at Cushing and decline in petrol demand are negatives, as is the smallish gasoline drawdown,” said John Kilduff, partner at Again Capital LLC in New York.
US crude failed to break through Tuesday’s lows or highs, testing resistance at both ends in what traders call an “inside day.”
By 12:49 EDT (1649 GMT), US crude fell 22 cents to $93.64 a barrel after settling 51 cents higher on Tuesday on stronger US economic data.
Brent crude for October delivery fell by seven cents to $102.43 a barrel after earlier rising to $103.07. Its premium to US crude widened 15 cents to $8.79 a barrel, having hit to its largest in two months on Monday at $9.41.
Oil benchmarks on both sides of the Atlantic have fallen by more than 10 percent since mid-June and remain on track to post a second monthly fall against a backdrop of lower imports by the United States and slowing growth in China and Europe.
Traders were watching to see whether the Buzzard oilfield in the North Sea would return quickly after shutting again for additional maintenance.
Reuters
