What's Moving the Oil Markets?

What's Moving the Oil Markets?

•IPE Brent futures in London ranged higher on Wednesday following reports that Tropical Storm Chris could become a hurricane later on today, brokers said. The market is monitoring the trajectory of the storm and whether it is likely to hit the oil and gas producing areas of the Gulf of Mexico.

•Further support to the market is coming from an expectation of a draw in crude and gasoline stocks when the Department of Energy releases it's US inventory figures later Wednesday. US oil inventory data due to be released Wednesday by the US Energy Information Administration and American Petroleum Institute are expected to show a 990,000 barrel draw in commercial crude stocks, analysts surveyed by Platts said Tuesday.

•Tightness of supply in the North Sea is the main reason that Brent is so high. The North Sea programs have been reduced, particularly Forties, with the production and loading of barrels per day at a low ebb due to extended maintenance on production facilities. Also, the presence of large stocks of crude in the US is contributing to relative weakness of WTI, although a large draw in crude stocks today could re-address the balance, a broker said.

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