Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024. Which stocks will surge next?Unlock AI-picked Stocks

WTI oil futures pare gains as crude stocks unexpectedly rise

Published 05/18/2016, 10:35 AM
Updated 05/18/2016, 10:35 AM
© Reuters.  U.S. crude stocks register surprise build; oil pares gains

Investing.com - West Texas Intermediate oil futures moved away from intraday highs in North America trade on Wednesday, after data showed that oil supplies in the U.S. registered an unexpected increase.

Crude oil for June delivery on the New York Mercantile Exchange rose 14 cents, or 0.29%, to trade at $48.45 a barrel by 14:34GMT, or 10:34AM ET. In a session of choppy trade, prices were at around $48.62 prior to the release of the inventory data after hitting an intraday low at $48.05 and having peaked earlier at $48.73.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories unexpectedly rose by 1.31 million barrels in the week ended May 13. Market analysts' expected a crude-stock decline of 2.833 million barrels, while the American Petroleum Institute late Tuesday reported a supply decrease of 1.2 million barrels.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, rose by 0.461 million barrels last week, the EIA said. Total U.S. crude oil inventories stood at 541.3 million barrels as of last week, which the EIA considered to be “historically high levels for this time of year”.

The report also showed that gasoline inventories decreased by 2.496 million barrels, compared to expectations for a drop of 0.15 million barrels, while distillate stockpiles fell by 3.17 million barrels, compared to forecasts for a 0.642 million decline.

A day earlier, New York-traded oil futures rallied to $48.76, the most since October 12, amid mounting concerns over global supply disruptions.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Oil prices have been well-supported in recent weeks due to a combination of Nigerian, Libyan and Venezuelan supply outages, declining U.S. shale output and reduced production of Canadian crude as a result of fires in Alberta's oil sands region.

Nymex oil prices are up nearly 80% since falling to 13-year lows at $26.05 on February 11.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for July delivery slipped 5 cents, or 0.10%, to $49.33 a barrel. On Tuesday, London-traded Brent futures jumped to $49.75, a level not seen since November 4.

Brent futures prices are up by roughly 85% since briefly dropping below $30 a barrel in mid-February, despite the collapse of talks at a Doha summit in April aimed at achieving a production freeze among OPEC and Non-OPEC producers. OPEC meets on June 2 in Vienna and may discuss the freeze initiative again.

Meanwhile, Brent's premium to the WTI crude contract stood at 91 cents a barrel, compared to a gap of 97 cents by close of trade on Tuesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.