The price of oil in the United States rose by approximately two percent on September 15, yet on the 16th fell to a one month low, below the $43 a barrel mark.
The upswing on Thursday ended a two-day dip, which has returned Friday. Prices were in accordance with gasoline futures. The US equity markets also went up higher Thursday. WTI/USD futures in North American session were trading at about $44.02 for every barrel. The Brent futures traded at $46,78 and Brent premium gap has further widened to about $2.76. Retail sales in America were found to be weaker, 0.3 percent and not the 0.1 percent as estimated. Claims of unemployment were near to the anticipated figure, and Philly Fed Manufacturing Index surpassed expectations. The US will release UoM Consumer Sentiment and PPI on September 16.
Prices continued to remain lower for this week. On September 15, inventories of crude oil showed a 0.6 million drawdown, considerably short of surplus forecast amounting to 2.8 million. The figure comes after the -14.5 million shock reading, as compared to the +0.6 million forecast. The price of oil has decreased 4.1 percent from September 13, as a response to a report authored by the International Energy Agency that oversupply could extend across 2017. Oil dropped six percent over previous two sessions. This was the result of data exhibiting substantial weekly builds in American petroleum products. Similar forecasts were given by OPEC and other global watchdog authorities.
Investors and traders bought, so that they can cover their short positions as the gasoline futures went up by four percent. There was nearly a one percent rise in the Standard&Poor 500 Index for the US equities. There was a 62 cent rise of Brent crude futures to $46.47 for every barrel. Futures of US West Texas Intermediate were also up 19 cents about $44.77 for every barrel.
Jay Hatfied of New York-headquartered InfraCap MLP has the opinion that the oil market has clearly over-reacted to products build data, and that caused the rebound of prices. InfraCap invests in the equities of relevant energy partnerships. He also said that the present is undeniably within the range of $40 to $50 per barrel. It means when the price dips below $45, it bounces up again. The gasoline futures went up as well after an announcement by BP Plc that it will slash production in the second weekend of September. The cut in production will be a minimum of 50 percent due to its repair of crude distillation unit.