There is no respite for West Texas Intermediate or WTI crude as it has gone down to a five months low amidst the news that the forecast shows that U.S. crude inventories rose to the highest level since June. The futures fell 2.2 percent yesterday in New York that led to a fall in the prices after a slight increase earlier.
According to the Organization of Petroleum Exporting Countries or OPEC the crude prices are stable and there is no need to interfere; however, the way the prices are falling steeply, it looks that it is the need of the hour. Whereas Crude stockpiles in the U.S., the world’s biggest oil user, have gone up for an eighth week, the demand for oil has slowed a bit.
Though WTI for December delivery was at $93.29 a barrel in electronic trading on the New York Mercantile Exchange (NYME), which in fact is an increase of 25 cents, the contract recorded a fall of $2.10 to $93.04 yesterday which is the lowest since May 31.
Nonetheless, the volume of all futures traded was about 1 percent below the 100-day average in yesterday’s trading.
Oil Stockpiles in U.S. Increase
Reportedly, U.S. crude stockpiles probably climbed to a great extent. Now, it is close to 386.2 million in the week ending Nov. 8 which is an increase of 800,000 barrel. Strangely enough the prices of oil are not falling in the developing countries like India where consumers are still shelling what they were a month ago or five months ago.
The U.S. to Surpass Russia and Saudi Arabia as the Leaders of Oil Producing
According to an annual World Energy Outlook from the International Energy Agency, the U.S. will surpass Russia and Saudi Arabia as the world’s largest oil producer by 2015, which according to it will enhance global oil supply to a great extent. It means there will be energy self-sufficiency in the next two decades amid booming output from shale formations.
Demand for oil will also increase to a great extent in the next couple of years. OPEC in its monthly Oil Market Report has declared that global oil demand will expand by 1.04 million barrels a day which is an increase of 1.2 percent. It will be 90.82 million in 2014. In the last month, OPEC’s 12 members pumped 29.89 million barrels a day.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org