The oil cost reached Wednesday at the New York Stock Exchange its lowest in the last 3 months, which was below 59$ a barrel. This happened as a consequence of a statement given by the U.S. Government, which said that the reserves of oil and gasoline have grown over the last couple of months.
Another aspect that determined this drop is the warmer weather from this period of time. At the end of August, the cost of an oil barrel was close to 70$ in the Northeast and Midwest part; now, according to the statements made by Tom Benz - broker for the BNP Parries Commodity Futures from New York - the value of an oil barrel is likely to reach 55$.
In the USA, the gas inventories rose with 4.2 million barrels to 201.1 million barrels - with almost 2 percent less than last year's level. The U.S. stock of distillates, among which diesel and heating oil, reached 120.8 million barrels, with two percents more than last year, but under the average registered this year.
The report from Wednesday suggests that the demand for oil is still below the level of demand from last year, but it is seen a take up process - last week was registered an average of demand for gasoline of 9.1 million barrels a day, with just 0.4 percents less than the same period of last year. For the distillates, the demand was in average of 4.1 million barrels a day, with 0.4 percents more than last year.
The question is whether the heating oil reserves can satisfy the growing demand in the months to come, as an outcome for the approaching of winter.
Oil Reaches the Lowest Price in the Last 3 Months
The oil reserves made in the last period of time impose a price of less than 59$ a barrel
London Blasts Effects: UK Pound and US Dollar Slump, Crude Oil Declines, Worldwide Stocks on their Biggest Losses in the Past Two Years
... so hot right now