Front-month WTI crude contract falls below $100 a barrel for the first
time since July 8, and the downward trend is likely to continue in the short
term, says Dominick Chirichella of the Energy Management Institute.
A bearish
undertone remains, with
U.S.
oil
inventories likely to build for a few more weeks as the
U.S.
and
Europe
are
still in refinery maintenance season and the winter heating season is still to
come. The positive meeting between
Iran
and
the West resulted in the Iranian risk premium starting to slowly dissipate, he
says.
Nymex November crude is -92 cents, or 0.9%, at $99.89/bbl. ICE December
Brent is -35 cents, or 0.3%, at $109.59/bbl.