Breaking News
0

Oil down slightly in choppy session on mixed U.S. crude stocks data

CommoditiesMar 14, 2018 01:13PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO - A pump jack is seen at sunrise near Bakersfield

By Ayenat Mersie

NEW YORK (Reuters) - Oil prices dipped on Wednesday in choppy trade, as a bigger-than-expected U.S. crude stock build pressured prices, but large draws of fuel stocks provided some support.

U.S. crude stocks rose by 5 million barrels, the biggest jump since late January, the U.S. Energy Information Administration (EIA) said. Expectations had been for a 2 million barrel build. The effect was offset somewhat by a larger-than-expected draw on fuel stocks.(For a graphic on Russia vs Saudi vs U.S. oil production click http://reut.rs/2FrFVMF)

"I don't think we have a clear set of directions, and I don't think this (EIA) report gives that much of an insight as to whether the rebalance continues or not. We continue to just chop around here," said Gene McGillian, manager of market research at Tradition Energy.

Brent crude oil futures (LCOc1) were down 18 cents to $64.46 per barrel by 12:45 p.m. EST (1645 GMT), while U.S. West Texas Intermediate (WTI) futures (CLc1) were down 9 cents at $60.62 per barrel.

"We’re not pressuring the downside that much. Of course, the reason is because we had some unexpectedly large draws in distillates and gasoline that, when added together, are two times bigger than the crude build," said Bob Yawger, director of energy futures at Mizuho.

OPEC said in its monthly report that supply from non-members is likely to grow by 1.66 million barrels per day (bpd) in 2018, almost double the growth it predicted in November, largely due to rising U.S. supply.

The Organization of the Petroleum Exporting Countries also said oil inventories across the most industrialized countries rose in January for the first time in eight months, a sign the impact of its output cuts may be waning. OPEC trimmed its 2018 demand forecast for its own crude by 250,000 bpd to 32.61 million bpd, the fourth consecutive decline.

Commerzbank (DE:CBKG) strategist Carsten Fritsch said that "according to the OPEC report, demand for OPEC's oil must be 33 million barrels per day for the rest of the year to get rid of any remaining oversupply."

Oil prices got a boost early in the session from a broader investor push into commodities after Chinese data showed industrial production in the world's largest importer of raw materials grew more than expected over the first two months of the year.

(For a graphic on World oil supply and demand balance click http://reut.rs/2FIxGvP)

Oil may also soon get some support from seasonal demand.

"We are now only two to four weeks away from when weekly oil inventory data will start to draw again which should be supportive for oil prices," SEB commodities strategist Bjarne Schieldrop said.

Oil down slightly in choppy session on mixed U.S. crude stocks data
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Leo Mu
Leo Mu Mar 13, 2018 12:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
LOL, How relentless rise in U.S. crude output? USA still needs to import oil.
Reply
0 0
Ronald Hoskin
Ronald Hoskin Mar 13, 2018 12:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yep. But broke the hold on crude prices by the cartels nevertheless
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email