Crude Oil rebounded on Wednesday and continued to its climb on Thursday adding 26 cents to trade at 101.46 after falling below the $100 price just a day ago. WTI crude oil prices rose by more than 1.5 percent on Wednesday after government data showed the country’s crude stockpiles fell sharply last week. The EIA released its weekly inventories report last night and US crude oil inventories declined by 7.5 million barrels for the week ending on 11th July 2014. Gasoline stocks rose by 0.171 million barrels whereas distillate inventories rose by 2.5 million barrels for the same time period. Oil prices receive some support from strong Chinese economic data earlier in the session. The country’s economy expanded at a 7.5 percent annual pace in the second quarter as a result of government stimulus measures, signaling expectations of increasing demand. China’s growth figures, however, were offset by news of rising supplies from Libya, where oil production has recovered to nearly 600,000 bpd.
Libya’s National Oil Corp has offered the first crude oil from its major eastern Ras Lanuf terminal for end-July loading, two weeks after a rebel group agreed to end its nearly one-year blockade of the country’s oil facilities. As global supplies continue to increase Brent Oil remained on its down trend trading at 107.16 giving up 4 cents this morning. The two oils continue to diverge.
U.S. crude futures extended gains in early Asian trade on Thursday after rallying more than $1 in the previous session, supported by government data showing a sharper fall in U.S. crude stocks than forecast. Crude inventories fell 7.5 million barrels, compared with analysts’ expectations for a decrease of 2.1 million barrels. Refinery utilization rose more than expected last week, up 2.2 percentage points to 93.8 percent of capacity.
Iran and six world powers are working to finalize the terms of a likely extension in negotiations over Tehran’s nuclear programme beyond a July 20 deadline and an announcement may come as early as Friday. U.S. President Barack Obama imposed the biggest package of U.S. economic sanctions yet on Russia on Wednesday, hitting its largest oil producer Rosneft and other energy, financial and defense firms, with what he called significant but targeted penalties over Ukraine. Crude oil can move in range to higher as geopolitical tensions shift rapidly.
Natural Gas continued to ease searching for a seasonal bottom as the thermometer in the US remains under its normal range. Gas is trading at 4.099 down 11 points this morning. U.S. natural gas futures closed up about 1 percent on Wednesday on forecasts for a brief summer heat spike that could draw more gas for cooling, even as mild weather was expected to prevail over the longer term with large stockpile builds. Front-month gas futures on the New York Mercantile Exchange ended up 2.2 cents at $4.12 per million British thermal units. Natural gas can move in range to down for the day ahead of the official weekly EIA inventory due in the US session. 