WTI Futures On Pace for 31% Yearly Loss; Brent 36% Yearly Loss
West Texas Intermediate (WTI) is on pace to decline 31% in 2015. Brent oil prices have also suffered greatly this year, down 36%. Oversupply concerns are still dominating the market, and Saudi Arabia has announced that they do not plan to cut oil production anytime in the near future.
A boom in United States shale oil has allowed crude production to outpace demand, and OPEC has decided not to reduce production in an effort to maintain market share.
Crude oil delivery for February is currently up $.10, or 0.27%, on the day. Crude oil is trading at $36.70 a barrel on Thursday, December 31. Crude oil has slightly increased on the month after falling to its lowest level since 2009 to $34.29 a barrel.
Trading volumes are expected to remain light today. Recent data out of the U.S. showed that total US crude oil inventories reached their highest levels in nearly 80 years, at 487.4 million barrels in inventory last week. US oil futures declined greatly on the news, falling 3.35% on Wednesday. Crude oil inventories rose by 2.6 million barrels last week, exceeding expectations of a 2.5-million-barrel drop.
ICE Futures Exchange in London ended the day on a positive note, with Brent oil for February delivery up 0.92% on the day to $36.80 a barrel.
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