WTI futures sent reeling by smaller than expected decline in oil stocks

Alexander Bueso Sharecast | 19 Apr, 2017 17:54 - Updated: 18:00 | | |

BP service station in Tennessee, US; oil & gas; petrol

US gasoline inventories rose unexpectedly last week as refineries continued to ramp-up, but the resulting drawdown in oil stockpiles was also less than anticipated.

Gasoline stockpiles rose by 1.5m barrels to 237.7m barrels during the week ending on 14 April, while those of distillate fuels shrank by 2.0m barrels, according to the Energy Information Administration, the US Department of Energy's statistical arm.

Commercial crude oil inventories in the States on the other hand also fell, shrinking by 1.0m barrels to reach 532.3m barrels.

Yet that also took analysts - who had expected a 1.4m barrel draw - by surprise.

The unexpected news sent WTI futures reeling; as of 17:50 GMT they were off by 1.5% to $54.08 a barrel on the ICE.

Thomas Pugh, a commodities economist at Capital Economics, pointed out a 0.2m barrel decline in stockpiles held by the US government's Strategic Petroleum Reserve, adding that the SPR's holdings of black gold had fallen by nearly 4.0m barrels over the past month.

Demand for gasoline also dropped back a little, Pugh added.

Wednesday's data was broadly similar to the latest figures from the American Petroleum Institute released during the previous session.

According to the EIA, refineries continued to increase their production with the degree of capacity in use rising to 92.9%.

In parallel, imports declined by 68,000 barrels a day last week to 7.8m barrels, while domestic oil output rose slightly.

More news

28 Apr S&P reaffirms AA rating on UK, outlook clouded by Brexit

Standard&Poor's reaffirmed its rating on the United Kingdom's long-term sovereign debt but warned of the potential impact on the economy from the uncertainty around the Brexit negotiations and their eventual outcome.

28 Apr FX round-up: Sterling nonchalant after UK Q1 growth disappoints

Sterling made steady gains on most key cross on Friday, appearing nonchalant in its reaction to disappointing UK economic growth data out mid-morning.

28 Apr Europe close: Weak US, UK GDP weigh on shareson the continent

European stocks ended the day on a mixed note after weak readings on UK and US GDP dragged many indices into the red at the end of the month.

28 Apr Laird off to solid start, but second half remains key

Electronic component maker Laird reported strong sales growth in the first quarter of 2017 after a difficult year.

28 Apr General Motors truck and SUV sales drive record earnings

Growth at General Motors accelerated past analyst forecasts with a record first-quarter set of earnings.

28 Apr RBS and Lloyds Bank customers hit by online glitch on payday

Royal Bank of Scotland and Lloyds Banking Group customers were prevented from accessing money in their accounts due to a technical glitch ahead of the bank holiday weekend.

28 Apr Kennedy Wilson confirms quarterly dividend, new office leases

Kennedy Wilson Europe Real Estate announced it will pay an interim quarterly dividend of 12.0p per share, while also reporting strong leasing momentum across key investments in Greater London and Dublin.

28 Apr Time spins backwards on decision not to sell business

Time Inc stock reversed recent gains after the board decided not to sell the publishing business as it was being "reinvigorated" under a new strategy.

28 Apr Morgan Stanley downgrades Berendsen on competition concerns

Berendsen not only needs to invest in property, plant and equipment but is facing increasing competition in the UK, warned Morgan Stanley as it downgraded the stock on Friday.

28 Apr UK mortgages and consumer credit card borrowing both decline - BBA

Mortgage approvals and consumer credit card lending both fell in March according to fresh data from the banking industry, providing the reason for the fall in house prices announced elsewhere on Friday.