Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Oil Down as Investors Digest Latest Supply Forecasts, U.S. Crude Oil Supply Draw

Published 04/15/2021, 12:33 AM
Updated 04/15/2021, 12:37 AM
© Reuters.

By Gina Lee

Investing.com – Oil was down Thursday morning in Asia, but remained near one-month highs as investors assessed the International Energy Agency (IEA)'s latest forecasts for oil demand and a draw in U.S. crude oil supplies.

Brent oil futures inched down 0.02% to $66.57 by 12:31 AM ET (4:31 AM GMT) after gaining 4.6% during the previous session and closing at its highest level since Mar. 17. WTI futures inched down 0.10% to $63.09 after climbing 4.9% during the previous session.

U.S. crude oil supply data from the U.S. Energy Information Administration (EIA) showed a draw of 5.889 million barrels in the week to Apr. 9. Forecasts prepared by Investing.com had predicted a 2.889-million-barrel draw, while a 3.522-million-barrel draw was recorded during the previous week.

The EIA data also said that gasoline supplied to the market during the past week increased to 8.9 million barrels per day (bpd), its highest level since August 2020.

Supply data from the American Petroleum Institute a day before recorded a draw of 3.608 million barrels.

East Coast crude stocks also hit a record low and investors remained optimistic over supply.

"We see robust stock draws even after factoring in bearish risks as refinery runs are set to rise sharply in the coming months," Citi Research analysts said in a note.

However, IEA's monthly report predicted that global oil demand and supply are set to be rebalanced in the second half of 2021, clawing back the demand lost in 2020 thanks to COVID-19. Should the prediction prove accurate, producers may then need to pump a further 2 million barrels per day (bpd) to meet the demand.

The Organization of the Petroleum Exporting Countries and allies (OPEC+) also raised its forecast for global oil demand in 2021 earlier in the week. The cartel expects demand to rise by 70,000 bpd from March’s forecast and global demand to rise by 5.95 million bpd in 2021.

Latest comments

Hope you all added on the DJIA dip last night, new record highs coming up AGAIN. Market always goes up. Never down. Always add on those negative news dips and reap the rewards. Yet again, I'm correct, yet people will down vote me.  Go look at all my calls, perfect.
There is a strong uptrend in crude oil so wti will continue growing.
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.