WTI at $58 as Putin Raises Tensions, ULSD Tumbles


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Crude futures rose Wednesday (12/3) on Moscow's 
apparent lack of urgency in ending its war with Ukraine, which has resulted in 
U.S. sanctions on Russian oil.

   The U.S. Energy Information Administration's report of builds across the 
board in crude, gasoline and distillate inventories for the week ended November 
28 trimmed some of the advance in oil prices.

   The report also caused gasoline to reverse a rally from earlier in the day 
and deepened losses in ULSD, the proxy for diesel.

   The NYMEX WTI crude contract for January delivery settled up $0.31 bbl at 
$58.95 bbl. ICE Brent crude for February delivery advanced $0.22 to settle at 
$62.67 bbl.

   Downstream, January RBOB gasoline futures dipped $0.053 to $1.8250 gallon. 
Front-month ULSD futures fell $0.0206 to close at $2.921, after falling earlier 
to $2.2752, it's lowest since October 23.

   The U.S. Dollar Index declined 0.498 points to 98.90 against a basket of 
foreign currencies.

   Crude prices rose after Russian President Vladimir Putin doused prospects 
for a quick diplomatic solution to Ukraine.

   U.S. efforts to end the war removed some of the geopolitical premium in oil 
and added to concerns that Russian oil, once free of sanctions, will add to 
global oversupply.

   But Putin raised the ante in the conflict again on Tuesday (12/2) by terming 
as unacceptable the demands of Ukraine's European allies. He also warned of 
reprisal attacks against those helping Kiev's strikes against Russian oil and 
energy infrastructure.

   Commercial crude stocks rose by 600,000 bbl to 427.5 million bbl, following 
the prior week's climb of 2.8 million bbl, the EIA said in its Weekly Petroleum 
Status Report.

   Distillate oil inventories climbed by 2.1 million bbl to 114.3 million bbl, 
after the prior weekly growth of 1.1 million bbl.

   Total motor gasoline inventories, meanwhile, increased by 4.5 million bbl to 
209.9 million bbl during the profiled week, adding to the prior week's rise of 
2.5 million bbl.

    




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