NYMEX WTI Contract Pares Gains After EIA Shows Crude Build
2/12 10:51 AM
NYMEX WTI Contract Pares Gains After EIA Shows Crude Build WASHINGTON, D.C. (DTN) -- Oil futures on the New York Mercantile Exchange trimmed earlier advances in mid-morning trade Wednesday after federal data reported a massive 7.5 million bbl build occurred in nationwide crude inventories during the first week of February, while gasoline supply fell less than expected and distillate inventories were drawn down more than expected. Near 11:30 AM ET, NYMEX March West Texas Intermediate futures traded up $1.24 to $51.18 bbl after having traded as high as $51.73 bbl earlier while Intercontinental Exchange April Brent advanced $1.62 to $55.63 bbl. NYMEX March ULSD futures surged 4.03cts to $1.6670 gallon and front-month RBOB futures spiked 5.29cts to $1.5671 gallon. Oil futures stayed on offensive in post-inventory trade Wednesday, even as the Energy Information Administration reported US crude stocks rose more than twice expectations. At 442.5 million bbl during the first week of February, nationwide crude supplies are about 2% below the five-year average. The hefty build occurred even as domestic refiners increased throughputs by 48,000 bpd to 16.0 million bbl and refinery run rates gained 0.8%. At the key Cushing supply depot in Oklahoma, the delivery location for the New York Mercantile Exchange West Texas Intermediate futures contract, crude stocks rose a third straight week, up 1.668 million bbl to 38.376 million bbl. U.S. crude oil imports increased by 363,000 bpd from the previous week to 7.0 million bpd, with four-week average import rate dropping nearly 7% below the corresponding four-week period a year ago. U.S. crude oil exports also decreased by 443,000 bpd to average 2.970 bpd, while during the four-weeks ended Feb. 7, exports averaged 3.327 million bpd versus 2.303 million bpd in the same four weeks last year. In refined products, data reported gasoline inventories decreased for the second straight week, 95,000 bbl to 261.0 million bbl, contrasting sharply with estimates of 1.1 million bbl build from the American Petroleum Institute. EIA reported gasoline production slid 662,000 bpd on the week to 9.241 million bpd, about 4% below the same week a year ago. Implied gasoline demand reversed down 211,000 bpd to 8.722 million bpd in the week profiled, 0.9% more than the corresponding week in 2019. Federal data show distillate fuel inventories dropped for a fourth straight week, down 2.0 million bbl to 141.2 million bbl, bringing supply to about 5% below the five-year average. Implied demand for distillates slid 391,000 bpd to 3.820 million bpd as of Feb. 7, 1.4% more than the same week in 2019, according to EIA. Total commercial petroleum inventories decreased 1.0 million bbl last week, EIA data shows. Total products supplied over the last four-week period averaged 20.7 million bpd, down 0.3% from the same period a year earlier. Liubov Georges, 1.646.359.4088, luibov.georges@dtn.com, www.dtn.com. (c) 2020 DTN. All rights reserved.