Crude & Brent Oil Weekly Fundamental Analysis October 21-25, 2013 Forecast

Weekly Analysis and Recommendation:

Crude Oil closed the week at 100.92 dipping for a short while to trade below the 100 price level as Brent Oil strengthened the most in more than three weeks as China’s growth accelerated for the first time in three quarters, indicating stronger demand for waterborne oils. Heavy Louisiana Sweet’s premium to West Texas Intermediate rose $1.30 to a premium of $2.10 a barrel according to data compiled by Bloomberg. It would be the largest gain since Sept. 25.

Gulf crude oil including Heavy Louisiana Sweet compete with foreign oils priced against European benchmark Brent for space in U.S. refineries. Brent’s premium over WTI rose as high as $9.04 a barrel today, the highest intraday level since Oct. 14. Gross domestic product in China, the world’s largest oil-importing nation, rose 7.8 percent in the July-September period from a year earlier, the National Bureau of Statistics said today in Beijing. It’s the first time growth has accelerated in three quarters.

The growth indicated higher demand for oils that can be shipped to China. WTI in Cushing, Oklahoma, is landlocked, and U.S. crude is largely prohibited from being exported.

U.S. petroleum demand rose in September from a year earlier as the economy grew, the American Petroleum Institute said. Total petroleum deliveries, a measure of demand, gained 2.7 percent to 18.6 million barrels a day, the API said in a report. Third-quarter demand was 1.7 percent higher than 2012, the industry-funded group said. U.S. manufacturing picked up last month, according to the Institute for Supply Management. Gasoline deliveries increased 2.1 percent from a year earlier to 8.74 million barrels a day, the API said. Demand for distillate fuels rose 3.8 percent to 3.82 million.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Historical: From 2011 to Present

Highest:   110.55 on Mar 01, 2012

Average: 93.60 over this period

Lowest:   74.95 on Oct 04, 2011

 

WEEKLY

• This Week in Petroleum
  Release Schedule: Wednesday @ 1:00 p.m. EST (schedule)
• Gasoline and Diesel Fuel Update
  Release Schedule: Monday between 4:00 and 5:00 p.m. EST (schedule)
• Weekly Petroleum Status Report
  Release Schedule: The wpsrsummary.pdf, overview.pdf, and Tables 1-14 in CSV and XLS formats, are released to the Web site after 10:30 a.m. (Eastern Time) on Wednesday.