Crude Markets Edge Higher on Thursday

by Nick Bond, KPI Bridge Oil
Thursday August 22, 2013

WTI took an early morning dip due to yesterday's signals that the Federal Reserve may reduce the economic stimulus package but was later supported by positive economic news.

The U.S. Labor Department reported monthly average jobless benefit claims recorded at the end of last week declined to 330,500 a week on average, the lowest since November 2007.

Manufacturing activity hit a five month high in the U.S. and new orders increased at their fastest pace since January while the index of U.S. leading indicators climbed by the most in three months.

All helped to boost investor sentiment and shrink the WTI discount to Brent by over $1.

Positive news also came from foreign economies as the Chinese Purchasing Managers Index surpassed a critical level signaling expansion activity after four months of contraction and indicating the worlds second largest economy is stabilizing.

Eurozone manufacturing figures also produced better than expected numbers driving European stocks to their highest level in three weeks. 

WTI rose $1.26 to settle at $105.03/bbl, while Brent only inched up $0.09, settling at $109.90/bbl. Bunker prices were stable in the primary ports.

About KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favourable terms.

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