The crude oil market had a very volatile week as did most other commodities: the news of the EU summit agreement on debt resolution shock the financial markets and the report of the U.S. GDP growth rate may have also contributed to the sharp gains in the WTI crude oil price.
By the end of the week, Brent oil price slightly declined by 0.75% while WTI spot oil sharply inclined by 2.41%; as a result, the spread between Brent oil and WTI oil sharply decreased to $17.51/b on Friday.
Here is a review of the price changes during last week (October 24th to October 28th) of crude oil (Brent oil and WTI), and a summary of the recent EIA crude oil and petroleum stockpiles report:
Crude Oil Prices – Highlights
WTI spot oil price sharply inclined during last week by 2.41%; its weekly average price also sharply rose by 6.45% as it reached $93.32 per barrel, compared with last week’s $86.73 per barrel. The average daily percent change of crude oil price (WTI) was 1.41%.
Europe Brent oil price on the other hand slightly slipped by 0.75% during the week, but the average price rose by 0.31% compared with previous week’s average.
The premium of Brent over WTI spot prices sharply declined during the week; its average price was $19.47; it finished the week at $17.51 – the lowest level since July 6th, 2011.
Crude Oil Charts
The following chart shows last week’s trend of (week ending on October 28th) WTI spot oil price, NYMEX Futures Prices (November delivery) and Europe Brent spot oil price:
In the chart, Brent spot oil demonstrates moderate changes throughout the week, while WTI oil price had a light upward trend.
The second chart shows the daily percent changes (i.e. changes around the trend) of crude oil price (WTI spot oil, WTI future, Brent spot oil):
WTI oil prices sharply rose on Monday and Thursday; on the other hand Brent oil prices only had a steep rise on Thursday. WTI oil prices also recorded a sharp drop on Wednesday.
Crude Oil Stockpiles –Highlights:
According to the recent EIA report of the US oil market, for the week ending on October 21st, U.S. Ending Stocks of crude oil rose by 4.7 million barrels to 1,033.58 million barrels; U.S. Ending Stocks excluding SPR of Crude Oil also rose to 337.634 million bbl.
U.S. Ending Stocks of Total Gasoline on the other hand slipped by to 204.918 million barrels.
The chart below shows the petroleum and oil stockpiles levels compared to the WTI crude oil price during 2010 and 2011.
For further reading:
Previous issues of weekly report: