Oil Futures Drop after API Reports Outsized Crude Build


   
    

   VIENNA (DTN) --- Oil futures closest to expiration on the New York 
Mercantile Exchange and Brent crude on the Intercontinental Exchange continued 
to slide Wednesday morning, after the American Petroleum Institute late Tuesday 
reported yet another sizable build to U.S. crude oil stockpiles.

   API data showed commercial crude oil inventories increased 4.09 million bbl 
in the week ending April 12, outpacing average expectations by a factor of six. 
The larger-than-expected draw to gasoline inventories -- 2.51 million bbl 
versus an expected 1.0 million bbl -- seemed to do little to alleviate the 
bearish effect of rapidly expanding crude oil inventories. All eyes will be on 
the Energy Information Administration's weekly inventory report, scheduled for 
10:30 AM ET release.

   At the same time, the geopolitical risk premium associated with an 
increasingly bellicose Iran and Israel is melting away, and oil futures' time 
structure indicates worries over near-term threats to supply have somewhat 
receded. Brent's forward curve has flattened since early April, with the prompt 
spread falling back below $0.80 bbl after having peaked at $1.07 bbl on April 5.

   Near 7:15 AM ET, WTI futures for May delivery were down $0.47 bbl to trade 
near $84.89 bbl, and Brent for June delivery fell $0.51 bbl to $89.51 bbl. RBOB 
for May delivery dropped $0.0182 gal to $2.8041 gal, while ULSD for May 
delivery traded near $2.6355 gal, down $0.0158 gal.

    

    

   Karim Bastati, karim.bastati@dtn.com, https://www.dtn.com.




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