This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Oil Market Update (October 17, 2012)

Oil fell on Tuesday due to supply concerns after the European Union introduced more sanctions on Iran. Strong supplies and large stockpiles in the United States also capped any meaningful gains.

The measures came days after Iran announced that it would negotiate on halting higher-grade uranium enrichment if given fuel for a research reactor, according to Fox Business News.

Crude oil for November delivery fell 21 cents to $91.65 a barrel on the New York Mercantile Exchange. The contract touched $89.79, the lowest level since October 9.

Front-month Brent crude was up 72 cents at $115.34 on the London-based ICE Futures Europe exchange.

The spread between grades could potentially narrow further as US Gulf Coast refiners resume operations after maintenance and as North Sea production climbs with the end of work on oil fields, as per  remarks by Hussein Allidina, head of commodities research at Morgan Stanley.

Adding to an already abundant supply, Saudi Arabia pumped approximately 9.77 million barrels a day (bpd) of crude oil in September. According to official Saudi government figures, the world's largest oil exporter produced 9.75 million bpd in August and 9.8 million bpd of crude in July.

"Fundamentally there is no shortage of oil, with Saudi Arabia and others maintaining high output while inventory levels are also good," said Ken Hasegawa, a commodity sales manager with Newedge in Tokyo.

Brent was supported by a possible delay in the restart of Britain's largest oil field, Buzzard, after maintenance, further affecting shipments of oil that sets the benchmark.

"Once again, it is apparent that the oil market is currently being driven by speculation and too much 'hot money,'" states a Commerzbank research note.

Meanwhile, Turkey is increasing its crude purchases from Russia and Saudi Arabia as it seeks to extend an exemption granted by the US for purchases from Iran, Energy Minister Taner Yildiz confirmed. The exemption that allows the country to continue buying Iranian crude amid sanctions expires on December 6.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs