Share

Oil hit by stockpile gain at US hub and emerging-market tumult

Oil held losses below $69 a barrel after an industry report showed inventories at a key US storage hub rose while deepening turmoil in emerging markets raised fears over energy demand.

Futures in New York were little changed after slumping the most in three weeks on Wednesday. Stocks in emerging economies slid toward bear-market territory and a basket of developing-nation currencies traded near the lowest since May 2017.

Meanwhile, the American Petroleum Institute was said to report crude inventories at Cushing in Oklahoma added 631 000 barrels last week.

Crude prices had been caught in a tug of war between bulls and bears in recent weeks as speculation that US sanctions on Iran’s exports will tighten global supplies countered signs of rising inventories and pledges by other OPEC members to boost output.

Now, as fear of a contagion spreads across emerging markets, concerns are growing that oil demand will weaken as a stronger dollar makes imports costlier for developing economies.

“Investors are increasingly cautious,” said Makiko Tsugata, a senior analyst at Mizuho Securities. Factors such as the emerging-market currency slump that could lead to lower demand are “making it difficult for investors to aggressively bet on oil,” she said.

West Texas Intermediate for October delivery traded at $68.51 a barrel on the New York Mercantile Exchange, down 21 cents, at 08:35. The contract slumped $1.15 to $68.72 on Wednesday. Total volume traded was 39% below the 100-day average.

Brent for November settlement dipped 10c to $77.17 a barrel on the ICE Futures Europe exchange, after losing 1.2% on Wednesday. The global benchmark crude traded at a $8.94 premium to WTI for the same month.

December futures in Shanghai slipped 0.4% to 519.5 yuan a barrel after dropping 0.5% on Wednesday.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders