October 22, 2020

Texas oil drops a slight 0.2% due to the increase in crude oil reserves



The price of Texas intermediate oil (WTI) closed Thursday with a 0.2% drop and stood at $ 59.56 a barrel, mainly due to an increase in crude oil reserves in the United States.

At the end of the operations with live voice in the New York Mercantile Exchange (Nymex), WTI futures contracts for delivery in February subtracted 5 cents from the previous session on Wednesday.

Oil prices fell on Thursday after the heavy losses of the previous session as a result of the increase in US crude stocks. and the alleviation of fears of a possible escalation of the conflict between the United States and Iran.

Prices were close to where they were before the US drone attack on January 3 that killed a high-ranking Iranian general, which caused an Iranian rocket attack on Iraqi air bases that house US forces and sent crude oil to its highest point in four months.

The president of the United States, Donald Trump, had eased tensions by moving away from further military action, lowering oil prices and diverting investors’ attention to an unexpected accumulation in US oil reserves the week pass.

Crude oil stocks rose from 1.2 million barrels in the week ending January 3 to 431.1 million barrels, the Energy Information Administration said Wednesday. Analysts expected a fall of 3.6 million barrels.

The leading oil producers led by Saudi Arabia agreed to reduce production by up to 2.1 million barrels per day (bpd) during the first quarter of 2020.

Meanwhile, oil and gas boat owners are preparing to pay a price for tensions between the United States and Iran in the form of higher insurance bills, which could add hundreds of thousands of dollars to shipping costs that They would eventually be passed on to fuel buyers, mainly in Asia, according to CNBC.

In this context, gasoline futures contracts with maturity in February practically remained stable at $ 1.65 a gallon, and those of natural gas, expiring the same month, added just over a penny to 2.16 dollars per thousand cubic feet.

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