Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

WTI oil futures trim gains as crude stocks rise by 2.8M barrels

Published 05/04/2016, 10:35 AM
© Reuters.  WTI oil futures trim gains after weekly supply data

Investing.com - West Texas Intermediate oil futures came off the highest levels of the session in North America trade on Wednesday, after data showed that oil supplies in the U.S. rose more than feared last week.

Crude oil for June delivery on the New York Mercantile Exchange tacked on 62 cents, or 1.42%, to trade at $44.27 a barrel by 14:35GMT, or 10:35AM ET. Prices were at around $44.58 prior to the release of the inventory data after climbing to a daily peak of $44.87.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 2.8 million barrels in the week ended April 29. Market analysts' expected a crude-stock rise of 1.7 million barrels, while the American Petroleum Institute late Tuesday reported a supply gain of 1.3 million barrels.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, rose by 243,000 barrels last week, the EIA said. Total U.S. crude oil inventories stood at 543.4 million barrels as of last week, the highest levels on record.

The report also showed that gasoline inventories increased by 0.5 million barrels, compared to expectations for a drop of 0.2 million barrels, while distillate stockpiles fell by 1.3 million barrels.

A day earlier, Nymex prices lost $1.13, or 2.52%, as worries about global growth resurfaced. Nymex oil prices are up nearly 50% since falling to 13-year lows at $26.05 in February, as a decline in U.S. shale production boosted sentiment. However, analysts warned that market conditions remained weak due to an ongoing glut.

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

Elsewhere, on the ICE Futures Exchange in London, Brent oil for July delivery rose 30 cents, or 0.67%, to trade at $45.27 a barrel after falling 86 cents, or 1.88%, on Tuesday as indications of increased production from the Organization of the Petroleum Exporting Countries dampened sentiment.

Brent futures prices are up by roughly 45% 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 $1.00 a barrel, compared to a gap of $1.32 by close of trade on Tuesday.

Latest comments

Australian central bank has punished our Canadian dollar , why they cut it's rate why did they intended to depreciate their currency value I don't understand their currency was going up well before the rate cute they should not turn the world market upside down . I don't trust them anymore .
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.