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Oil up, Offsetting Anemic Fuel Demand With Tumbling Crude Stocks 

CommoditiesApr 07, 2021 03:24PM ET
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© Reuters.

By Barani Krishnan and Liz Moyer

Investing.com - Oil prices edged higher on Wednesday after the trade focused more on the tumble in weekly crude stockpiles than the surge in inventories of fuel products such as gasoline and diesel that pointed to tepid seasonal demand for energy.

“Both the supply and demand equations had their sway on today’s action and the market chose to go with one, though that doesn’t mean the volatility we’ve seen in recent days is over,” said John Kilduff, partner at New York energy hedge fund Again Capital.

New York-traded West Texas Intermediate, the benchmark for U.S. crude, settled up 10 cents, or 0.2%, at $59.43 per barrel. WTI traded in a wide range of nearly $2 a barrel for the day, moving between an intraday low of $58.12 and high of $60.04.

London-traded Brent, the global benchmark for crude, settled up 42 cents, or 0.7%, at $63.16.  Brent also moved within a band of nearly $2, hitting a session low of $61.60 and peak of $63.50.

Crude inventories declined 3.522 million barrels last week, compared with analysts' expectations for a draw of 1.436 million barrels, the Energy Information Administration said in its Weekly Petroleum Status Report.

But gasoline inventories rose 4.044 million barrels last week, compared with expectations for a draw of 221,000 barrels, the EIA said.

Distillate stockpiles, which include diesel and heating oil, rose 1.452 million barrels against expectations for a build of 486,000 barrels.

More surprising was the EIA’s downward revision of production estimates for U.S. crude, which it put at 10.9 million barrels for last week versus the previous week’s 11.1 million bpd.

That revision did not jive with the steady climb in the U.S. oil rig count seen since mid-September.

The rig count, an indicator of future production, stood at 337 during the week to April 1, nearly double from the August record low of 172.

“There’s no valid reason that I can see for this 200,000 bpd slash in production estimates, and I’m almost certain that the EIA is going to wind up the number again in the coming week,” said Kilduff.

 

Oil up, Offsetting Anemic Fuel Demand With Tumbling Crude Stocks 
 

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Comments (9)
Dion Argueta
Dion Argueta Apr 09, 2021 12:29PM ET
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It's all supply and demand. They are almost certain to ramp up production for offsetting supply disruption and likely Oil will rise anyway because the ratio of economies unlocking and opening up are biased to openings over closings demand will be high for Oil and Gasoline product.
Jim Morrison
Jim Morrison Apr 07, 2021 4:09PM ET
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investing is a bear on oil. every article is passive aggressive
Barani Krishnan
Barani Krishnan Apr 07, 2021 4:09PM ET
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The market action speaks for itself.
Rvf LionHeartTV
Rvf LionHeartTV Apr 07, 2021 1:14PM ET
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Happy
Alan Rice
Alan Rice Apr 07, 2021 12:14PM ET
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You and I will set opec's price for oil.
shajeeb rahman puthiyanatheyil
shajeeb rahman puthiyanatheyil Apr 07, 2021 11:01AM ET
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Which platform is better to understand oil price movements?
Oscar Romero
Oscar Romero Apr 07, 2021 11:01AM ET
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I use platform “Oil & Gas.” It’s free and works apple or android devices.
Oscar Romero
Oscar Romero Apr 07, 2021 11:01AM ET
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Also use”OilPrice” for strategic oil and gas info. Its free.
Alan Rice
Alan Rice Apr 07, 2021 11:01AM ET
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The Internal Platform.
Mcenroe Lee
Mcenroe Lee Apr 07, 2021 10:59AM ET
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oil price still dropping.
Bhakta BK
Bhakta BK Apr 07, 2021 10:57AM ET
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But oil price is still dropping down
Oscar Romero
Oscar Romero Apr 07, 2021 10:57AM ET
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Markets are irrational or reacting to Saudis ramping up oil production
Chek Yin
Chek Yin Apr 07, 2021 10:53AM ET
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Chek Yin
Chek Yin
Chek Yin Apr 07, 2021 10:53AM ET
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0978904181
Ghulam Ali
Ghulam Ali Apr 07, 2021 10:53AM ET
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hello
 
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