Crude Benchmarks Correct After Overreaction to EIA Report

by Tim Bonett, KPI Bridge Oil
Thursday May 8, 2014

Crude benchmarks corrected today after an overreaction to yesterday's EIA report.

The market seems to have realized that there is still plenty of supply despite the unexpected fall in stockpiles.

The euro fell against the dollar after Mario Draghi made comments that policy changes would not be in store until June at the earliest and the ECB kept the benchmark interest rate at a record-low level.

A stronger dollar reduces the appeal of oil to investors.

Brent's losses were limited as President Putin is testing the Russian army's combat readiness and there is no evidence of a Russian withdrawal from Ukraine.

Brent slipped $0.09/bbl settling at $108.05/bbl while WTI retracted $0.51/bbl to $100.26/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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