Brent pares gains on US oil data
BRENT CRUDE futures for October delivery fell more than 1 per cent yesterday on talk of a possible release of US strategic petroleum reserves and expectations that North Sea output will rebound after maintenance curbs September production.
Front-month US September crude showed resilience, edging up in choppy trade. But gasoline and heating oil futures fell sharply in tandem with Brent’s decline.
After the Brent September contract expired on Thursday, October Brent pared gains in post-settlement trading on news the White House was “dusting off old plans” for a potential release of strategic oil stocks.
Brent was struggling to stay on pace for a third straight weekly gain, needing to finish above $112.95 a barrel, while US crude closed in on a 3 per cent weekly increase.
Escalating geopolitical tensions over Syria’s civil conflict and the dispute over Iran’s nuclear programme, along with North Sea production restrictions and hopes that central banks will provide more stimulus, had combined to pull Brent up since it settled at $89.23 a barrel on June 21st.