WTI Extends Fall on Saudi Price Cut as U.S. Supply Seen Rising
RIFAN FINANCINDO BERJANGKA – West Texas Intermediate extended losses from the lowest level in more than two years after Saudi Arabia cut the cost of its oil to U.S. customers and amid speculation stockpiles rose in the world?s biggest consumer.
Futures fell as much as 0.8 percent in New York, after declining 2.2 percent yesterday. Saudi Arabian Oil Co. lowered the premium for all grades to the U.S., the company said yesterday in an e-mailed statement. The state-owned producer increased the cost of oil sales to Asia and Europe. U.S. crude stockpiles rose by 1.9 million barrels to the highest level in four months, a Bloomberg News survey showed before government data tomorrow.
WTI for December delivery dropped as much as 65 cents to $78.13 a barrel in electronic trading on the New York Mercantile Exchange and was at $78.30 at 9:22 a.m. Seoul time. Prices fell $1.76 to $78.78, the lowest close since June 2012. The contract lost 12 percent last month, the most since May 2012. The volume of all futures traded was 18 percent below the 100-day average. Prices have decreased 20 percent this year.
Brent for December settlement lost $1.08, or 1.3 percent, to $84.78 a barrel on the London-based ICE Futures Europe exchange yesterday. It dropped 9.3 percent in October. The European benchmark crude closed at a premium of $6 to WTI yesterday.