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

21 Aug US close: Markets mixed on light trading Monday

Wall Street finished mixed amid light volumes on Monday, as investors kept their wallets closed as both international tensions and domestic political turbulence put a dampener on sentiment.

21 Aug Europe close: Stocks down on euro gains, geopolitical angst

Stocks finished the day lower amid aggressive rhetoric out of North Korea as the US and South Korean militaries kicked-off their annual 10-day joint exercises and a bounce in the single currency's value.

21 Aug London close: Stocks flat ahead of Jackson Hole amid geopolitical nerves

London stocks ended on a mixed note at the start of the week as investors remained cautious amid geopolitical tensions.

21 Aug US open: Stocks flat ahead of Trump speech on Afghanistan

Wall Street was trading in mixed fashion ahead of a speech from the US president on Monday evening in which he was expected to outline his new strategy for the war in Afghanistan.

21 Aug Tuesday preview: Public deficit due, results from Persimmon, BHP, Cairn

The UK's public deficit gets its monthly update on Tuesday, along with the CBI's industrial trends survey and results from the likes of BHP Billiton, Cairn Energy, Persimmon and Wood Group.

21 Aug Luca Provolo appointed head of sales at Directa Plus

Graphene--based products producer and supplier Directa Plus announced the appointment of Luca Provolo as its head of sales on Monday, with effect from 4 September.

21 Aug Verditek subsidiary wins trial contract with Italian ad agency

Clean technology company Verditek announced on Monday that its 51% owned subsidiary Greenflex Energy - an Italian based manufacturing solar photovoltaic technology company - has won an initial trial contract with Media One - one of Italy's largest out of home advertising agencies - to supply and install its proprietary solar PV technology to power digital advertising billboards at outdoor bus shelters in Italy.

21 Aug FTSE 250 movers: Hikma boosted by upgrade, TBC higher on results

London's FTSE 250 was up 0.1% to 19,636.29 in afternoon trade.

21 Aug ITM Power welcomes launch of government hydrogen programme

Energy storage and clean fuel company ITM Power noted the launch of the UK Government's ‘Hydrogen for Transport Programme’ on Monday.

21 Aug Gfinity appointed esports partner to Formula 1

International esports group Gfinity announced on Monday that it has been appointed as esports partner for Formula 1, to deliver the Formula 1 ESports Series from September.