According to the U.S. Energy Information Administration, in the week ended July 25, U.S. oil stockpiles were down 3.7 million barrels, compared with market estimates of a 1.8 million-barrel drop. Societe Generale said that poor U.S. refining margins, particularly on the Gulf coast, may eventually lead to run cuts or early maintenance by the end of August, as U.S. refineries continue to operate at peak summer levels. A decrease in refinery runs would reduce crude-oil demand and weigh heavy on prices, reports Market Watch.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in September were at $99.67 a barrel, down $0.60 in the Globex electronic session. September Brent crude on London’s ICE Futures exchange was down $0.22 to $106.29 a barrel. Nymex fell 70 cents a barrel and Brent lost $1.21 a barrel, reports Market Watch.
Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt said, “If prices failed to rise on bullish arguments then the market sentiment is very bearish. I would expect prices to decline,” according to The Economic Times.
The contract hit a two-week low of $99.16 after Energy Information Administration data showed that gasoline and distillates stockpiles rose despite an above-forecast decline for crude.
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