Oil Prices Continue to Fall

by Nick Bond, KPI Bridge Oil
Tuesday August 6, 2013

Oil prices continued yesterday's drop and moved down again, pressured by falling equities, an announcement from the EPA, and North Sea pipelines returning after maintenance. 

Equities fell today and brought oil down with them as investors became nervous after a Fed official hinted that the central bank could begin curbing stimulus efforts as early as September.

The ongoing bond-buying program has supported markets heavily recently and any reduction could inhibit demand.

Prices were further pressured as the EPA announced today that it would consider reducing next year's amount of renewable fuel that the industry must blend into gasoline supplies.

Many have blamed this year's higher gasoline prices on the mandate, as it calls for the U.S. to increase the amount of renewable fuels consumed.

Across the Atlantic, Brent prices were pressured as flows through a Forties pipeline continued to rise as maintenance finished, allowing more crude to enter the market.

Eyes now lie on tomorrow's EIA report to view the demand picture in the U.S.

WTI fell $1.26 to settle at $105.30/bbl while Brent only dropped $0.52 to settle at $108.18/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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