Crude Oil prices to trade lower
WTI oil prices declined by 0.3 percent yesterday to close at D46.4 per barrel as Reuters estimated that at least 3.65 million barrels per day (bpd) of refining capacity was offline or 19.6 percent of total U.S. capacity after Motiva shuttered the largest U.S. refinery. Tropical Storm Harvey knocked out several refineries and disrupted fuel production, while a backup in crude supplies pushed U.S. crude oil futures down more than 2.5 percent.
We expect oil prices to trade lower today, international markets are trading lower by 0.3 percent at D46. 30 per barrel. Bloating inventories after several refineries halted their operations in the US hit by massive floods in Texas and Gulf Coast will weigh on prices. Also, global markets will closely watch US inventories data due tonight.