Oil ends down as much as 2 pct on oversupply, gasoline pressure

Thu Nov 5, 2015 4:34pm EST
 
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By Barani Krishnan

NEW YORK (Reuters) - Oil settled down as much as 2 percent on Thurday as an oversupply of crude and weak gasoline prices extended the previous session's rout.

Crude prices fell nearly 4 percent on Wednesday after the U.S. government reported a 2.85 million-barrel crude inventory spike as higher domestic production made up for lower imports last week.

In Thursday's session, U.S. crude's West Texas Intermediate (WTI) futures CLc1 settled down $1.12, or 2.4 percent, at $45.20 a barrel.

Brent futures LCOc1 closed down 60 cents, or 1.2 percent, at $48.68. Brent briefly rose during the session, supported by steady share prices on Wall Street. [.N]

On the oil products side, gasoline futures RBc1 lost 2 percent, extending Wednesday's 4 percent tumble, amid worries of peak turnout from U.S. refineries as the autumn maintenance cycle draws to a close.

Market intelligence firm Genscape added to the bearish sentiment in crude oil, estimating a build of over 383,000 barrels at the Cushing, Oklahoma delivery point for U.S. crude futures in the week to Nov. 3, traders who saw the data said.

According to Genscape, Cushing took in nearly 713,000 barrels in the four days to Nov. 3, showing a supply onslaught late in that week which most likely offset an earlier draw, the traders said.

"What we're seeing is not a good sign for November," Scott Shelton, oil broker for ICAP in Durham, North Carolina, said, referring to Cushing's worsening fundamentals.   Continued...

 
A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. REUTERS/Nick Oxford