Oil Prices Fall Back Over Rising Stockpile Speculation

by Nick Bond, KPI Bridge Oil
Tuesday November 5, 2013

Oil prices fell back into the red today on speculation that U.S. crude stockpiles rose again last week amid weak demand and increasing domestic production.

Analysts have been predicting that this week's EIA report will show that supplies rose again last week, as the United States demand continues remains sluggish. 

Prices also received a little bit of pressure after the Institute for Supply Management's non manufacturing purchasing index for October unexpectedly rose, spooking some investors that the Fed could accelerate their reduction in stimulus efforts. 

Brent's drop was limited, however, after a reports stated that some violence arose in the Libyan capital of Tripoli today. 

Gunfire and explosions lasted a few hours, which investors feared could spread and inhibit the country's exports longer than currently expected. 

Investors will look to tomorrow's weekly inventory report from the Energy Information Administration for a more accurate look at supply & demand in the states after the API reported today that supplies rose by 870,000 barrels. 

WTI fell $1.20 to settle at $93.42/bbl, while Brent dropped $0.90, settling at $105.33/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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