Oil Prices Retreat After Thursday Rally; WTI Trades Below $47 Per Barrel Pre-Bell (NYSE:BP)


West Texas Intermediate (WTI) crude oil futures for delivery in October were trading 1.5% lower at $46.92 per barrel during Friday’s pre-market trading session while Brent oil futures for delivery in November were 1.6% lower at $49.19 per barrel. The pre-bell price declines come after both oil benchmarks posted substantial gains on Thursday following a larger-than-expected decline in the size of US inventories last week. WTI and Brent finished 4.7% and 4.2% higher, respectively, on Thursday after data from the Energy Information Administration (EIA) showed that stockpiles of crude oil contracted by 14.5 million barrels to 511.4 million barrels in the week ended September 2.

This was a larger decline than the 12.1 million barrel contraction projected by the American Petroleum Institute a day before the EIA figures were released. The pre-bell price declines also come as the value of the greenback is gaining. At the time of writing, the Dollar Index – which tracks the value of the US currency against a basket of foreign currencies – was 0.03% higher. As a dollar-denominated commodity, a higher greenback tends to make oil less affordable for international buyers, Although oil prices are trading lower, both benchmarks are on course to post their biggest weekly gain in three weeks, according to Reuters news agency.

The stock decreased 3.26% or $1.13 during the last trading session, hitting $33.5. About 9.21M shares traded hands or 60.73% up from the average. BP plc (ADR) (NYSE:BP) has risen 15.74% since February 8, 2016 and is uptrending. It has underperformed by 0.75% the S&P500.

BP p.l.c. is an integrated oil and gas company. The company has a market cap of $104.16 billion. The Firm provides its clients with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging. It currently has negative earnings. The Firm operates through three divisions: Upstream, Downstream and Rosneft.

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