Little change for oil prices is expected next week, although the market dropped after the ECB cut rates to new low but believe it will be short-lived since market ought to go the opposite way, the market specialist Marine Bunker Exchange (MABUX) said.
The Brent crude slipped below $105 a barrel on Thursday to its lowest level since early July as investors were reluctant to lock in fresh positions ahead of key announcements due later in the day. Investors are waiting on Thursday for the outcome if the European central Bank’s policy meeting and the US third-quarter GDP numbers to gauge the devel-oped nations’ oil demand outlook. - The European Central Bank just announced, Thursday afternoon, that ECB cuts its benchmark interest rate to a record low after a drop in inflation to the slowest pace in four years, in order to keep prices stable. ECB President Mario Draghi lowered the benchmark interest rate to a record low to 0.25 percent from 0.5 percent, using one of this remaining interest-rate cut to bolster economy. This ECB action will likely give the European economy a push and increase the demand for oil.
The ECB now has just one more quarter point cut left before reaching zero, increasing the likelihood of unconventional tools such as quantitative easing or a negative deposit rate if prices slow further or the economic recovery stalls. Euro-area inflation is less than half the ECB’s target and unemployment is at the highest level since the currency bloc was formed in 1999.
The US benchmark is drawing support from the steep fall in oil product stockpiles we saw in the data last night suggesting an increased demand. The US gasoline stocks fell 3.8 million barrels, much larger than the 300.000 barrel draw analysts had expected, according to data from the US Energy Information Administration.
|
Product |
380 cSt HSFO |
380 cSt LSFO |
|
|
|
|
|
Rotterdam 2013-11-07 |
568 |
591 |
|
Rotterdam 2012-11-01 |
595 |
628 |
|
|
|
|
|
Gibraltar 2013-11-07 |
595 |
631 |
|
Gibraltar 2012-11-07 |
610 |
669 |
|
|
|
|
|
St Petersburg 2013-11-07 |
400 |
420 |
|
St Petersburg 2012-11-07 |
490 |
570 |
|
|
|
|
|
Panama Canal 2013-11-07 |
596 |
658 |
|
Panama Canal 2012-11-07 |
620 |
670 |
|
|
|
|
|
Busan 2013-11-07 |
625 |
713 |
|
Busan 2012-11-07 |
651 |
813 |
|
|
|
|
|
Fujairah 2013-11-07 |
620 |
745 |
|
Fujairah 2012-11-07 |
611 |
- |
All prices stated in USD / Mton
All time high Brent = $147.50 (July 11, 2008)
All time high Light crude (WTI) = $147.27 (July 11, 2008)
|
Product |
Close Nov. 06 |
|
Light Crude Oil (WTI) |
$94,80 |
|
Brent Crude Oil |
$105,24 |