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The
monthly average U.S.-dollar price of West Texas Intermediate (WTI) crude oil ticked
higher in September ($2.64), to $47.64 per barrel. The price increase coincided
with a stronger U.S. dollar, the lagged impacts of a 388,000 barrel-per-day
(BPD) increase in the amount of oil supplied/demanded in July (to 20.0 million
BPD), and modest retreat in oil stocks. The monthly average price spread between
Brent crude (the predominant grade used in Europe) and WTI narrowed by $1.53 in
September, to $2.13 per barrel.
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The
latest data shows futures prices dipping lower, but investor Jim
Rogers thinks a rebound may be “around the corner.” Despite OPEC pumping
near record amounts of oil, China’s imports slowing and U.S. crude stockpiles
remaining roughly 100 million barrels above the five-year seasonal average,
U.S. benchmark prices have held steady for more than four weeks since plunging
to a six-year low at the end of August.
“When
there’s bad news and something doesn’t decline, it usually means it’s at a
bottom and will be turning,” Rogers said, while admitting, “Whether we’re at a
turning point or not, I don’t know yet….”
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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.
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