Crude Oil Prices

[dan_s]

I thing WTI crude oil prices will move very close to Brent as year-end approaches as Cushing continues to de-bottleneck. Global demand for oil will increase in Q4. - Dan

From CME Group: "The crude oil complex entered the US trading hours under selling pressure, with weakness in outside markets and mounting uncertainty regarding the government shutdown. Prices seemed to revert back toward unchanged levels heading into this morning's EIA inventory data. Meanwhile, reports that the southern portion of the Keystone XL Pipeline would be completed by late October was seen as supportive force for November Crude Oil. The EIA data showed a much larger than expected build in US crude oil supplies last week of 5.472 million barrels. However, inventories in Cushing Oklahoma slipped for the 13th consecutive week, which seemed to offset the negative headline reading. The refinery operating rate was down 1.3% to 89.0% last week. Positive action in the crude oil market also served to prop up RBOB prices. EIA gasoline stocks rose 3.495 million barrels, which was quite different than expectations calling for a decline. EIA distillate stocks fell 1.680 million barrels, which was a little larger than expected, and that sent an added measure of support to the heating oil market."