Oil: Market under pressure - ING

The oil market has been under pressure for much of October, with growing crude oil inventories in the US weighing on the market, according to Warren Patterson, Commodities Strategist at ING.

Key Quotes

“US inventories have increased by 22.3MMbbls since mid-September, as refineries reduce run rates over maintenance season. Later today the API will release its weekly inventory numbers, and the market is expecting to see yet another build, with a Bloomberg survey suggesting that crude oil inventories increased by 3MMbbls.”  

“ICE Permian crude oil futures: Yesterday saw the launch of ICE's Permian WTI physically delivered crude oil futures contract, which is deliverable in Houston. In its first day of trading, 446 lots were traded, spread across the Dec, Jan and Feb contract.”