Wednesday, October 9, 2013

Is Crude Oil Set To Break Below $100 Soon?

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Crude oil & gasoline inventories in the U.S. moved up during the week ended October 04, official data showed Wednesday.

The U.S. Energy Information Administration in its weekly crude oil report said U.S. commercial crude oil inventories increased 6.8 million barrels to 370.5 million barrels last week, and are above the upper range for this time of year.

The week before, crude oil inventories increased 5.5 million barrels to 363.7 million barrels.
Moreover, total motor gasoline inventories moved up 0.10 million barrels last week, after adding 3.5 million barrels in the prior week, and are at the top of the average range.

Analyst expected crude oil inventories to add 1.4 million barrels last week.

Meantime, U.S. crude oil imports during the week averaged about 8.0 million barrels per day last week, down by 320,000 barrels per day from the previous week, official data revealed. Over the last four weeks, imports have averaged just under 8.0 million barrels per day, 5.5 percent below the same four-week period last year.

Year-to-date, oil futures have gained around 9%, but strategists at Bank of America Merrill Lynch reiterated their view that West Texas Intermediate crude prices will fall below $100 a barrel this quarter. Read

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