October crude oil traded higher throughout the morning hours, helped by a rebound in risk attitudes and expectations for a large US inventory draw this week. Some traders also viewed weakness in the US Dollar as another factor that may have support October crude oil. Meanwhile, Brent crude oil spent most of the session in negative territory, pressured by prospects that Libyan oil production might return sooner than expected, as well as IEA data that showed a decline in global oil demand. As a result of this morning's price disparity between the two contracts, the spread differential between Brent and WTI crude oil narrowed by more than a $1.50 to $22.50. The weakness in Brent crude oil was also seen as limiting gains in RBOB and heating oil this morning.
Join the Discussion