Oil Prices Down 3% on U.S. Crude Build
Oil Futures Down 3% on U.S. Crude Build
Barani Krishnan
DTN Refined Fuels Market Reporter
SECAUCUS, N J (DTN) -- Oil prices tumbled by about 3% Wednesday (11/19)
morning on the American Petroleum Institute's report of a third straight weekly
build in U.S. crude inventories.
Russia's reported plans to reach its OPEC+ production quota over the next
few months regardless of U.S. sanctions added to the downside pressure on crude
futures.
The NYMEX WTI contract for December delivery fell by $1.64, or 2.7%, to
$59.10 bbl after a session low at$ 58.77. ICE Brent for January delivery eased
by $1.70, or 2.6%, to $63.81 bbl after sliding to as low as $62.86 earlier.
December RBOB gasoline futures climbed by $0.0518 to $1.9475 gallon.
Front-month ULSD futures, meanwhile, slumped by $0.1121 to $2.589 gallon after
soaring to a five-month high of $2.7089 on Tuesday (11/18).
The U.S. Dollar Index was down by 0.151 points to 99.6 against a basket of
currencies, adding to the negative sentiment in commodity markets.
U.S. crude oil, gasoline and distillate inventories rose during the week
ended November 14, marking a build for the third straight week, the American
Petroleum Institute reported on Wednesday (11/18).
U.S. commercial crude oil supply increased by 4.4 million bbl in the
profiled week, adding to back-to-back prior weekly builds of 1.3 million and
6.5 million bbl.
The crude build for last week came despite inventories easing by 800,000 bbl
at the Cushing, Oklahoma delivery point for NYMEX West Texas Intermediate
futures. The Cushing hub saw a 43,000 bbl decline the previous week.
Gasoline inventories rose by 1.5 million bbl, following a 270,000 bbl draw
the prior week. Distillate fuel stocks rose by 600,000 bbl, after the previous
weekly rise of 944,000 bbl.
Market participants will be focused on the U.S. Energy Information
Administration's inventory report due at 10:30 a.m. ET for an official read of
the stockpile situation for the week ended November 14.
On the global front, Russian Deputy Prime Minister Alexander Novak told
reporters on Wednesday that Russia expects to reach its OPEC+ oil production
quota by the end of 2025 or early 2026.
Russia's current quota for November reportedly stands at approximately 9.5
million bpd. Novak indicated that Russia is steadily increasing oil production
in November, with the growth rate slightly exceeding that of October. Last
month, the country reportedly fell short of its quota by 70,000 bpd.
Novak added that U.S. sanctions imposed in October against Russian energy
firms Rosneft and Lukoil had not affected the state's oil production.
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