Regal Group International: Oil drops below $76 per barrel.

Sept. 28, 2010 - PRLog -- Regal Group International has learned that analysts believe that the oil price’s sudden drop to $75.72 a barrel may due to a soon to be released U.S. report which is expected to show that fuel stockpiles in the world’s top oil-consuming nation continued to rise over the last week.

European benchmark Brent has been trading at a premium to the U.S.’s benchmark, West Texas Intermediate, after it came under pressure from the unusually high U.S. inventories.

"Overall it looks like the trend is downward. Maybe the statistics tonight will give an excuse for further weakness," a broker at Bache Commodities told sources known to Regal Group International.

Industry specialists believe that U.S. distillate and gasoline stockpiles may have increased last week by as much as 300,000 and 700,000 barrels respectively, with demand currently considered weak.


Regal Group International has learned from sources with knowledge of the industry that crude stocks are believed to have dropped by around 400,000 on lower imports as seasonal refinery maintenance slowed demand.

A report on the inventory statistics is soon to be released by the American Petroleum Institute and will be followed by a government report from the Energy Information Administration.

An OPEC spokesman has told Regal Group International that there are no plans to alter the 12 nation group’s output policy.

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