Crude Falls on Stronger Dollar & Stockpiles Data

Crude prices retreated from its one-week high on Thursday; dragged lower by the stronger dollar after the Federal Reserve said it would end its asset-purchases program.

Futures for the North American West Texas Intermediate (WTI) for December delivery fell 0.33% to $81.93 per barrel on the New York Mercantile Exchange, while the European benchmark Brent for December settlement traded 0.18% lower to $86.26 a barrel on the London-based ICE Futures Europe exchange. 

The US dollar index, which measures the strength of the greenback against a basket of major currencies, strengthened 0.34% to 86.2450 after the Federal Open Market Committee (FOMC) announced the end its asset-purchasing program amid the improving US economy.

US Stockpiles

The crude stockpiles report from the Energy Information Administration (EIA) showed that crude oil inventories in the US, the largest consumer of the commodity, climbed by 2.06 million barrels in the week ended October 24, compared to analysts’ expectation of 3.8 million.

Supplies at Cushing, Oklahoma, the delivery point for WTI futures, advanced 776,000 barrels to 21.4 million. Gasoline stockpiles fell by 1.236 million barrels to 203.1 million, the lowest since November 2012. The data also showed that distillate fuels, including heating oil and diesel, dropped 5.3 million barrels at 120.4 million.

The Organization of Petroleum Exporting Countries are scheduled to meet on November 27 in Vienna as the 12-member group are expected to decide to cut global production to boost prices after crude futures fell to nearly 10% in October.

 

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