By Srinivas Chowdary Sunkara // petrobazaar // 23-2-18
Oil prices jumped on surprise stock draws
Yesterday, Oil prices advanced on EIA stock report of unexpected drawings in crude stocks and distillates while gasoline stocks were increased a little. A weaker dollar also supported oil prices. IEA says that the U.S will become an undisputed world oil leader in near future and Saudi will be the top oil exporter. In U.S, the first VLCC (very large crude carrier) was loaded with 2 million barrels of oil from the Louisiana Offshore Oil Port(LOOP) to export.
Crude oil price update
U.S crude grade oil futures (WTI) for April settlement surged $1.3 or 2.11% at $62.77 per barrel on Nymex and Brent crude futures to be delivered in April jumped $1.3 with 2.11% change at $66.39 per barrel on London based ICE futures Europe exchange. On Friday, Both the futures are trading in a positive territory with a little margin at the time of reporting.
EIA report - summary
The U.S government agency report of 1.6Mb of drawings in crude stocks, contradicted the analysts estimated build of 1.9Mb. Gasoline stocks were ticked up by 0.3Mb and distillates, Including diesel and heating oil stocks were reportedly down by 2.4 Mb during the last week. EIA said that Net imports were down and exports were up which is a positive sign. Although Market is concerned with a surge in production numbers, crude production ticked lower for the first time since early January. Refinery capacity utilization was edged down due to maintenance season. The inventories in Cushing fell for a ninth straight week to the lowest level since 2014. The decline is mainly due to an interruption of pipeline supply from Canada, which is supporting U.S oil prices.
The inventory report eased fears in the market and unexpected falling of oil stocks along with a dip in production numbers created floor support for oil prices. A momentum in dollar index may cap the gains. I expect oil trades in sideways to close with weekly gains.
Disclaimer: Views and opinions expressed here are for information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com
taglines:crude price on 23/2/18, crude oil price, crudetoday,crude today, today crude, crude price today, crude oil price, price of crude oil, wti price, brent price