Oil Markets Mixed as API Report Shows Drop of 2.6M Barrels

by Nick Bond, KPI Bridge Oil
Tuesday July 16, 2013

Oil markets were mixed today as WTI was pressured by lower equities and ahead of the Federal Reserve chief's testimony, and Brent for August settlement rose before expiring today. 

U.S. stock markets fell today, pressuring crude as well, as investors await news from Bernanke's testimony to congress tomorrow.

Focus lies on the testimony after Federal Reserve of Kansas City President Esther George stated that the central bank should begin tapering its bond-buying program soon.

That statement was enough to have many people nervous that if any stimulus efforts are to be curbed, it will hinder U.S. Economic growth. 

WTI losses were limited though, by anticipation of tomorrow's EIA report showing a draw of approximately 2.5 million barrels.  The API report today showed a drop of 2.6 million barrels.

Front-month Brent prices moved up before expiring today, while the more heavily traded September contract remained more flat and only gained $0.06. 

Global demand worries continue to lend some pressure to oil markets as forecasts show a higher gain in future supply than future demand. 

WTI fell $0.32 to settle at $106.00/bbl, while Brent for August settlement gained $0.31 to expire at $109.40/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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