Home / TIPS / MTECHTIPS:-U.S. crude falls to near 6-week lows, as supply glut weighs

MTECHTIPS:-U.S. crude falls to near 6-week lows, as supply glut weighs

MTECHTIPS:-U.S. crude falls to near 6-week lows, as supply glut weighs

 

 U.S. crude futures fell mildly on Monday to a fresh six-week low, amid a downbeat forecast on 2016 prices by an influential analyst and indications of a spike in imports as production continues to wane. On the New York Mercantile Exchange, WTI crude for December delivery traded between $43.86 and $44.93 a barrel before settling at 44.19, down 0.57 or 1.23% on the session. After surging above $50 a barrel in mid-October, Texas Long Sweet futures have now closed lower in nine of the last 13 sessions. At one point on Monday, U.S. crude futures dropped to its lowest level since Sept. 14. On the Intercontinental Exchange (ICE), brent crude for December delivery wavered between $47.42 and $48.32 a barrel before closing at 47.59, down 0.39 or 0.81% on the day. Meanwhile, the spread between the international and U.S. domestic benchmark of crude stood at 3.40, slightly above Friday’s level of 3.39 at the close of trading. In a note to investors, prominent Wall Street bank Goldman Sachs (N:GS) remarked that distillate storage in the U.S. and Europe is nearing historically high levels, amid “record refinery utilization, only modest demand growth (especially relative to gasoline), and increased imports from the East on refinery expansion and Chinese exports.” As a result, Goldman warned investors of comparable downturns in 1998 and 2009, when distillate storage reached overall capacity, pushing crude prices considerably lower.

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