A gas and oil refinery is seen in an aerial view in the early morning hours of July 30, 2013 in Bismarck, North Dakota. Oil prices in New York today fell to their lowest level since March due to refinery shutdowns. (Photo by Andrew Burton/Getty Images)

US Oil Prices at Four-Month Low amid Refinery Outages

July 31, 2014
Oil prices in New York Thursday tumbled to their lowest level since mid-March helped by unplanned refinery shutdowns in the U.S. midwest.

NEW YORK -- Oil prices in New York Thursday tumbled to their lowest level since mid-March helped by unplanned refinery shutdowns in the U.S. midwest.

The benchmark West Texas Intermediate for September delivery fell $2.10 to $98.17 a barrel on the New York Mercantile Exchange.

In London, European benchmark Brent oil for September delivery declined 49 cents to $106.02 a barrel.

Andy Lipow, head of Houston consultancy Lipow Oil Associates, said news that a number of midwest oil refineries were experiencing outages put a "signficant amount of pressure on the WTI today."

The concern is that crude inventories will build at the closely-watched Cushing, Oklahoma oil-trading hub where WTI is priced.

Lipow said traders are also looking ahead to planned maintenance in September at many refineries as the summer travel season ends.

Analysts said oil likely garnered extra selling pressure from Thursday's rout in U.S. equities.

While the U.S. oil contract plummeted, Thursday's declines were modest in Brent, which is more leveraged to the international oil market.

Key questions include the effect of new sanctions on Russian oil production and the impact of continued violence in Libya on the North African country's output.

Eurasia Group predicted Brent would continue to trade in the $105-to-$110-a-barrel range in the third quarter.

"Concerns about geopolitical risk will continue to be supportive, particularly in relation to the perceived fragility of the partial recovery in Libyan production and a renewal of concerns about risks related to Iran," the consultancy said in a note.

Copyright Agence France-Presse, 2014

Popular Sponsored Recommendations

Navigating Disruption: A Leader’s Guide to Strategy Under Uncertainty

Nov. 1, 2023
AI, sustainability, digital--industrials are facing disruptive forces that are redefining what it takes to win. What got your company where it is today won’t get you where you...

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Discover How an Eye Tracking Study Improves Training Procedures

Oct. 29, 2023
Did you know that your training processes can be streamlined by visualizing and analyzing key skills within your employee base? Find out how we use eye tracking to capture advanced...

Digital Production Tracking: How Connected Platforms with No-Code Deliver Value

Sept. 19, 2023
Manual tracking lacks the real-time visibility manufacturers need to identify root causes and remain competitive. Digital, connected production tracking is crucial for your operations...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!