Crude oil dropped on Thursday to the lowest in almost two weeks after minutes from the U.S. Federal Reserve`s July meeting showed yesterday that more policy makers are considering to start reducing the economic stimulus this year.
Members of the Federal Open Market Committee were “broadly comfortable” with Chairman Ben Bernanke’s plan to start reducing bond buying later this year if the economy improves. Such a change in policy could boost the U.S. dollar adding downside pressures on commodities.
- Crude is trading around $103.72 a barrel after falling $0.13
- Brent is trading around $109.55 a barrel after falling $0.24
Losses, however, were limited after China’s data improved the prospects for oil demand from the world`s second largest oil consumer. Activity in China’s manufacturing sector hit a four-month high in August as new orders rebounded, reinforcing signs of stabilization.
Meanwhile, the EIS report Wednesday showed that crude stockpiles dropped 1.09 million barrels to 37.4 million last week. The lowest since March 2012. Gasoline stockpiles slid 4.03 million barrels while distillates inventories rose 871,000 barrels.
- Natural gas is trading at $3.481 per cubic feet after rising 0.61%
- Gasoline is trading at $2.9378 per cubic feet after rising 0.01%
- Heating oil (diesel) is trading at $3.0734 a gallon after falling 0.11%
Easing worries about a possible supply disruption due to Egypt’s political crisis was a assurance given by the Egyptian army which said it will guarantee the safety of the canal; in Libya the Marsa al Brega port may start handling oil cargoes in the next few days.