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Oil and Gas Discussion BB
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API Reports 5 Million Barrel Inventory Draw, WTI Oil Prices Unable to RespondThe latest weekly American Petroleum Institute (API) inventory data recorded a draw of 5.0mn barrels, following a build of 1.5mn barrels the previous week and the consensus forecast was for much smaller draw of around 0.3mn barrels. The fuel inventories data was again important following the substantial builds reported last week. Gasoline inventories recorded a very substantial build of 9.75mn barrels, from 1.69mn barrels last week, while distillate recorded a smaller build of 1.17mn barrels. Overall fuel stocks recorded a third successive week of sizeable builds which will maintain concerns surrounding the risk of cuts in refinery runs and there is likely to be fresh uncertainty surrounding the strength of US demand given the increase in gasoline inventories. Cushing recorded a draw of 1.01mn barrels, the second successive draw. Crude prices were subjected to renewed selling pressure on Wednesday with WTI weakening to lows near $51.0 p/b before a slight recovery. A stronger dollar had a significant impact in undermining prices, especially in the New York session. Concerns over rising US production also had a negative impact with the latest Energy Information Administration (EIA) report suggesting that shale production would increase in February. Higher US output would make it more difficult for OPEC to push prices higher. The latest data suggested that OPEC production edged slightly lower to 33.09mn bpd for December from 33.40mn in November ahead of planned cute to 32.50mn for January. Crude also remained vulnerable to an unwinding of long, non-commercial positions, especially given recent slippage in spot prices. From around $51.35 ahead of the API data, WTI ticked higher to $51.50 before paring gains immediately with prices unable to make any net impression after the data despite the larger than expected headline draw. Thursday’s EIA inventories release will again trigger choppy trading conditions and fuel stocks will again be an important focus. The latest US production data will also have a significant impact given that the potential 2017 increase in shale output is an important market focus. |
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Msg # | Subject | Author | Recs | Date Posted |
41492 | Re: API Reports 5 Million Barrel Inventory Draw, WTI Oil Prices Unable to Respond | amstocks82 | 2 | 1/20/2017 4:46:10 PM |