WTI Crude Oil Hits 17 Month Low Beneath $90 as Production Outstrips Demand

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Commodities Trading

: 03 October 2014

WTI crude slumped below the $90 mark for the first time in 17 months on signs that oil supply from Russia and Saudi Arabia are outstripping demand.

The tables turned during the early afternoon session, with equity markets posting sharp rebounds that quickly spilled over into the energy complex.

As a result, WTI managed to close the day $0.65 higher at $91.39.

The latest sell off in stocks seemed to shift some investor interest towards alternative assets.

Obviously gold stood to benefit the most, yesterday gaining $1.4 to $1,214.3 despite a late recovery for stocks.



Commodities Trading

: 02 October 2014

US crude saw an initial rebound from the previous day's sharp drop, only to resume the slump during the second half of the trading session, finishing $0.65 in the red at $90.71.

Interestingly, this came despite the weekly stockpiles report showing a draw of 1.4 million barrels rather than the expected 0.6 million barrels increase.

For gold, the level just above the $1,200 mark seems to be rather strong support, with the commodity finally reflected an escalation of geopolitical risk.

The precious metal rose by $4.2 to $1,212.8 and is still going strong this early morning.



Commodities Trading

: 01 October 2014

We saw a sharp plunge in WTI crude oil as energy traders shrugged off the potential supply disruptions raised by the conflict in the Middle East.

For all the talk from OPEC about acting to support oil prices, output increased in September due to a production hike in Libya to its strongest level in more than a year.

The likely boost to stockpiles saw US crude lose $3.01 to $91.32 per barrel.

Gold prices are heading south once again, hitting a fresh recent low that was last seen in January, following another rally in the US dollar.

The precious metal dropped by $6.5 to $1,208.7 as the likely timing of higher interest rates in the US keeps drawing nearer.



Commodities Trading

: 30 September 2014

Over the last week, ongoing good news regarding the US economy has overshadowed reports of plentiful oil supplies, with WTI crude prices bouncing off the $90.40 level hit on 22 September.

This was the case again yesterday as US crude added $0.97 to $94.32 per barrel amid renewed speculation of rate hikes coming sooner than previously anticipated.

Gold prices fell towards their recent low yesterday, losing $3.9 to $1,214.9, as heightened jewellery demand from Asia, and particularly India, has so far failed to spur a meaningful recovery.

It appears that the resilient stock market and strong economic data from the US has kept the precious metal out of fashion.



Commodities Trading

: 29 September 2014

Signs that the US economy is expanding at the fastest pace in nearly 3 years easily spilled over into the energy complex as demand for oil was set to stay well supported.

So it was hardly a surprise to see the WTI crude prices rallying, closing $1.00 higher at $93.45 per barrel.

As usual, good news on the US economic front spurred trouble for gold prices as it negatively affected demand for alternative investments.

The precious metal lost $3.4 to $1,217.4 and is still struggling to recover from an eight month low touched on Friday.


By Jonathan Sudaria, 3 October 2014


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