(FE)
Oil futures fell Monday as supplies from Saudi Arabia and Russia rose while economic growth stumbled in Asia amid escalating trade disputes with the United States. A flurry of announcements over the weekend unsettled oil markets. Global benchmark Brent fell 2.4 per cent in the session, changing direction from last week when it gained more than 5 per cent. Brent crude fell $1.93 to settle at $77.30. U.S. light crude fell to settle down 21 cents at $73.94.
The premium for U.S. crude for the front month compared with the second month widened to as much as $2.38 a barrel, the most since Aug. 20, 2014. The move indicates the market expects supply shortages to be more severe in the short term. Information provider Genscape said U.S. crude inventories at the Cushing, Oklahoma, delivery hub had fallen in the week, traders said. Genscape said stockpiles at the hub were down 3.2 million barrels in the week to June 22 but rose slightly in the four following days to June 26.
