Wednesday, July 24, 2013

Oil: WTI Falls Most in a Month, Bakken at 7-week Low

There is an awful lot of oil sloshing around.
Front futures have recovered a bit, $105.18 last, down $2.05.
Two from Bloomberg:
WTI Crude Tumbles Most in More Than a Month on Output
West Texas Intermediate crude fell the most in more than a month as U.S. output surged to a 22-year high last week and Chinese manufacturing contracted more than economists estimated.

Futures fell as much as 2.2 percent after the Energy Information Administration said crude production rose 0.9 percent to 7.56 million barrels a day, the most since December 1990. Crude and fuel supplies declined, the report showed. The HSBC Holdings Plc and Markit Economics China manufacturing gauge came in at 47.7, according to a preliminary survey of purchasing managers. Analysts surveyed by Bloomberg forecast 48.2....MORE
Bakken Crude Weakens to 7-Week Low as Pipeline Restart Expected
Bakken crude on the spot market weakened to a seven-week low relative to West Texas Intermediate as Enbridge Inc. (ENB) prepared to restart a pipeline delivering to the oil’s pricing point.

Repairs on Enbridge’s Line 81 continued this morning, and the line is expected to return to normal service later today, Houston-based spokeswoman Terri Larson said by e-mail. It’s the main line on Enbridge’s Bakken system, and can deliver as much as 210,000 barrels a day to Clearbrook, Minnesota.
The line was shut July 22 after a 1-barrel leak was discovered in Rugby, North Dakota.

Bakken priced in Clearbrook weakened $1 to a $5-a-barrel discount to WTI at 12:06 p.m., the largest since June 3, according to data compiled by Bloomberg....MORE

Oil Looks Extended: "Huge Backwardation In Crude Oil" (and what it means for equities)