Oil futures closed lower on Thursday with benchmark US crude posting its first loss in six sessions, analysts citing profit taking for the price pullback from multi-year highs.
“Although some projections are as bullish as $ 100, current price levels are already starting to feel high for traders, who are still keen to profit from rising prices,” said Louise Dickson, senior market analyst. tankers at Rystad Energy, in a note.
“Traders who had set $ 86 as a selling threshold have taken the opportunity to already pocket profits and oil prices have plunged as a result,” she said.
Crude West Texas Intermediate for delivery in December CL00
fell 92 cents, or 1.1%, to close at $ 82.50 a barrel on the New York Mercantile Exchange. The November contract expired at a seven-year high on Wednesday, a fifth consecutive session.
December Brent gross BRN00
the global benchmark, fell $ 1.21, or 1.4%, to $ 84.61 a barrel on ICE Futures Europe, after ending Wednesday at its highest level since October 2018.
Profit-taking aside, the path for crude still looks bullish for the rest of the year, Dickson said, thanks to growing demand and a strict production policy from the Organization of the Petroleum and Petroleum Exporting Countries. its allies, a group known as OPEC +.
OPEC + members have struggled to meet production quotas after agreeing this summer to start easing existing production cuts in monthly increments of 400,000 barrels per day.
Crude futures traded lower in early trades on Wednesday before rebounding after government data showed an unexpected weekly drop in US crude inventories. Gasoline and distillate inventories, which include heating oil, also declined.
Thursday November gasoline RBX21
lost 1.1% to $ 2.48 per gallon and HOX21 November heating oil
lost 1.7% to $ 2.549 per gallon.
“The EIA posted a combined crude and product drawdown of nearly 10 million barrels for commercial inventories, with additional drawdown from strategic reserves,” said Robbie Fraser, global head of research and analysis at Schneider Electric, in a daily note.
Crude inventories “also remain well below normal for this time of year” and will “need months of a more solid supply / demand balance before they align with the five-year average,” he said. -he declares.
Also on Nymex, natural gas futures moved lower after the EIA reported on Thursday that national natural gas supplies increased by 92 billion cubic feet for the week ended Oct. 15. This was a little more than the average increase of 88 billion cubic feet. Forecasts from analysts surveyed by S&P Global Platts.
November NGX21 natural gas
was $ 5,115 per million UK thermal units, down 1.1%.
The weekly supply is increasing from a five-year average increase of 49 Bcf and an increase of 69 Bcf for the same week a year ago, according to S&P Global Platts.