World News
Crude Markets Settle Higher Wednesday After Larger-Than-Expected Draw on U.S. Stockpiles
After a choppy day of trading, crude markets settled slightly higher, supported by a larger-than-expected draw on U.S. stockpiles and concerns about supply disruptions.
Prices this morning were pressured as investors continued to fear that the Federal Reserve will begin to taper its stimulus program after its September meeting.
Many feel that if the bond-buying program begins to curb, it could slow U.S economic growth.
Oil then rose as the EIA reported that crude inventories dropped by 2.8 million barrels while Cushing stockpiles fell 1.4 million barrels to their lowest level since March 2012.
The ongoing tensions in the Middle East added to today's rise as Egypt declared a state of emergency, causing concerns about a supply disruption through the Suez Canal and Sumed pipeline, though as of today, operations are normal.
News out of Libya helped push prices up also after reports said production fell to approximately 600,000 barrels per day, as terminals remained shut and storage tanks are reaching capacity.
Libya holds Africa's largest reserves and without supply to the market, many feel the situation could support prices further.
WTI erased early drops and gained $0.02 by day's end to settle at $106.85/bbl, while Brent rose $0.38, settling at $110.20/bbl. Bunker prices were stable to firm in the primary ports.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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