November Nymex WTI prices are trading in positive territory Tuesday as the market awaits the return of the US markets. November WTI futures ended Monday’s session 55 cents lower at $89.33 a barrel, with the spread between WTI and Brent crude widening to $22.49 a barrel, the widest differential seen since Oct 19, 2011 as declining output in the North Sea continues to underpin Brent prices. Rising tensions between Syria and Turkey has seen WTI prices regain some ground this morning with some concerns building that if the conflict escalates it may disrupt Brent supplies. Looking ahead, in terms of supply, weekly data from the API is due on Wednesday while the US EIA release is due on Thursday, both a day later than usual due to Monday’s US holiday. At 364.698 mln barrels as of September 28 according to EIA data, US crude stocks were 10.46% above the five-year average. The five-year average of EIA data suggests that a build of 1.5 mln barrels is typical for this time of year, Platts says. WTI has edged higher from session lows of
$89.58 to post an intra-day high of $90.33, now trading $90.17 a barrel.
EasyForexNews Research Team