October Nymex WTI prices are trading lower Thursday, extending their losses from the previous session. October WTI ended Wednesday’s session 84 cents lower at $95.49 a barrel in NY after trading in a $94.76 to $96.37 range. WTI has softened in Asian trade this morning, drifting lower from an early high of $95.30 to an intra-day low of $94.91 a barrel. A day after G7 finance ministers released a surprise statement urging oil producers to pump more to meet demand, the U.S. Energy Information Administration Wednesday warned of tightening in the oil markets, citing “increasing backwardation of the Brent futures curve and the related steady decline in crude oil inventories in the United States.” Backwardation, when the price of an oil futures contract compared to the spot price is less than the cost of carry, has been seen globally as “oil balances have been tightening over the course of the third quarter,” the agency said. October WTI currently trades at $94.98 a barrel, down 51 cents on the session.
EasyForexNews Research Team