Forecasts of huge increase in US crude stockpiles moderate market sentiment

07-Oct-10

New York's main contract, light sweet crude for delivery in November dipped to US$82.6, while Brent North Sea crude for November delivery dipped to US$84.7. Market sentiments have toned down amid forecasts of a huge increase in US crude stockpiles. Data released by the American Petroleum Institute (API) has shown a spike in US crude reserves by 4.4 million barrels in the last week. However, prices are likely to be supported by a disruption in oil supply in the US Gulf Coast and a rolling strike in a key French oil terminal. The shipping channel in Houston, has been shut after a barge accident on Sunday – this has caused a crude shortage in four refineries around the area as supplies to them were disrupted. Fos-Lavera, a major oil terminal in France has been impacted by ongoing strike that has entered its tenth day, triggered by union opposition to government plans to reform the country's ports.