March 2014 Monthly Average Crude Oil Price

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The monthly average U.S.-dollar price of West Texas Intermediate (WTI) crude oil was virtually unchanged in March, easing down by $0.09 to $100.75 per barrel. That price stability coincided with a stable U.S. dollar, and the lagged impacts of a fall-off in oil supplied -- 160,000 barrels per day (BPD), to 18.9 million BPD -- in January that were offset by a more recent continued accumulation of crude stocks. The monthly average price spread between Brent crude (the predominant grade used in Europe) and WTI narrowed by $1.02 in March, to $7.06 per barrel.

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Oil futures were climbing as our data-collection period came to an end. According to ASPO-USA, “unease over the effect the Ukrainian situation will have on Russian oil and gas exports provided much of the impetus for the move, but some modest improvements in the U.S. economic situation and the continuing drain of crude from Cushing, OK to Gulf Coast depots contributed to the increase in U.S. oil prices. Closure of the Houston ship channel for three days during the last week of March due to an oil spill also contributed to the higher prices.”

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The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.