Bunker Prices Soften as Crude Prices Slide on Surging U.S. Production

by Nick Bond, KPI Bridge Oil
Wednesday July 24, 2013

Poor economic data coming out of China and surging U.S. crude production weighed on prices today, pulling both benchmarks down after yesterday's small gains.

Early in the session, Chinese manufacturing numbers indicated that growth is slipping, indicating weaker demand for oil.

The preliminary Manufacturing Purchasing Index fell 0.5 to 47.7 from a month earlier, defining more contraction.

In the United States, the EIA's weekly report showed that domestic output rose to 7.56 million barrels a day last week, reaching the highest level since December 1990.

The report also showed a modest draw on stockpiles, which wasn't enough to support oil to rise. 

Many are saying that investors will need better economic growth numbers and increase in global demand to push benchmarks to new highs.

WTI fell $1.84 to settle at $105.39/bbl and Brent slipped $1.23 to settle at $107.19/bbl. Bunker prices were soft 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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