Oil prices fell today in another bad day for financial markets as government data showed refiners were ramping up output. Refining capacity on the East and Gulf coast was above 95%, putting these refiners pretty much at maximum operating capacity. Gasoline prices have finally started to show some reprieve falling 5% over the last two days. Brent remains at a discount to WTI with traders citing strong export demand and tightening crude stocks. Bearish sentiment also followed reports that the United States is planning to relax sanctions against Venezuela and allow Chevron Corp to negotiate oil licenses with state producer PDVSA. “The perception that we could see some more supply coming Venezuela coming into the market, along with the equity markets, it’s causing some profit taking in a much-needed technical correction in the crude,” said Dennis Kissler, senior vice president for trading at BOK Financial. US crude inventories fell by 3.4MM/bbls last week unexpectedly. WTI traded down $2.81 or -2.5% to close at $109.59. Brent traded down $2.82 or -2.52% to close at $109.11.

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