West Texas Intermediate crude retreated for the first time in five days amid speculation that the end of the peak driving season and start of refinery maintenance will curb demand.
WTI fell as much as 1.5 percent as gasoline futures reached the lowest level for a front-month contract since November. The main driving season in the U.S. typically runs through Labor Day and refineries slow operations during scheduled maintenance that peaks in September and October.
"It's the typical post-holiday selloff," said Stephen Schork, president of the Schork Group Inc. in Villanova, Pennsylvania. "We are going into refinery turnaround pretty soon. All that bullish exuberance has been exorcised out of the market right now."
WTI for October delivery declined $1.25, or 1.3 percent, to $94.71 a barrel at 10:30 a.m. on the New York Mercantile Exchange. The volume of all the futures was 27 percent above the 100-day average. Floor trading was closed yesterday for the Labor Day holiday and electronic trading will be booked for settlement purposes today.
Brent for October settlement dropped $1.03, or 1 percent, to $101.76 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $7.11 to WTI on the ICE, compared with a close of $7.23 on Aug. 29.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.