Crude oil prices
WTI (West Texas Intermediate) crude oil prices closed at $45.55 per barrel on Tuesday, October 20, 2015. That’s 0.97% lower than October 14 prices of $46.66 per barrel. WTI oil futures rebounded on October 20, 2015.
Brent closed at $48.71 per barrel on October 20. It was down 0.98% compared to $49.24 per barrel on October 7.
Who gains? Who loses?
The fall in oil prices is negative for oil producers such as Murphy Oil (MUR), Cimarex Energy (XEC), Hess (HES), ConocoPhillips (COP), Occidental Petroleum (OXY), and Chevron (CVX). It’s beneficial, however, for refiners such as Exxon Mobil (XOM), Tesoro (TSO), Phillips 66 (PSX), and Valero Energy (VLO). Exxon Mobil accounts for 23.4% of the Vanguard Energy ETF (VDE).
Drivers of WTI prices
A slowdown in China’s economy and an increase in OPEC (Organization of the Petroleum Exporting Countries) production and massive stockpiles are the drivers of WTI-Brent prices. A report on the Chinese economy shows that Chinese producer prices fell 5.9% and consumer prices rose 1.6% in September.
Oil prices fell in Asian markets on Wednesday, October 21. The API (American Petroleum Institute) report showed a larger-than-expected build in US crude inventories last week, creating concerns on global oversupply. A weaker dollar also provided some support to the fall in crude oil prices.