Oil Trades Near One-Week Low on Supply; Goldman Sees $130
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Oil traded near the lowest price in more than a week as signs of rising U.S. stockpiles were balanced by concern that spare production capacity may be insufficient to cover any supply disruption in the Middle East.
Futures were little changed after falling 1.2 percent yesterday. Inventories at Cushing, Oklahoma, the delivery point for West Texas Intermediate oil, reached a nine-month high, the Energy Department said. Goldman Sachs Group Inc. said global spare capacity is at “dangerously low levels” and oil-market fundamentals will tighten this year, pushing Brent crude to $130 a barrel in 2013. Saudi Arabia will make up any “perceived or real” shortfall, Oil Minister Ali al-Naimi said in Kuwait.