Crude oil is weaker on September 13
After starting the week on a positive note by gaining on September 12, crude oil lost its strength on September 13 amid bearish market outlook reports. At 12:50 PM EST on September 13, the West Texas Intermediate crude oil futures contract for October delivery was trading at $45.04 per barrel—a drop of ~2.7%. The Brent crude futures contract for November delivery was trading at $47.25 per barrel—a decline of ~2.2%.
Bearish reports dented the sentiment
Bearish market outlook reports released by the IEA (International Energy Agency) and OPEC (Organization of the Petroleum Exporting Countries) dented the sentiment in the market. According to the monthly crude oil market report released by IEA on September 13, it lowered the crude oil demand forecast for 2016 and 2017 due to lower demand growth in China, Europe, and India. The demand forecast for 2017 was reduced by 200,000 bpd (barrels per day). The demand forecast for 2016 was revised down by 100,000 bpd to 1.3 million barrels per day. This bearish report weighed on crude oil prices since the early hours on September 13. Read Crude Oil Fell amid Bearish IEA Report to learn more.
In addition to the IEA’s monthly report, the bearish market outlook report released by OPEC on September 12 forecast an increase in supply and a decrease in demand for 2017. This report also weighed on the market. The market was looking forward to crude oil inventory reports by the American Petroleum Institute and the U.S. Energy Information Administration.
At 1:05 PM EST on September 13, major crude oil producers Carrizo Oil & Gas (CRZO), Canadian Natural Resources (CNQ), Total SA (TOT), and British Petroleum (BP) fell ~7.4%, ~4.2% ~3.5%, and ~3.4%, respectively. The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) and the PowerShares DB Oil ETF (DBO) fell ~4.6% and ~1.7%.
In the next part, we’ll discuss how copper performed on September 13.