Oil prices continued to lose steam Tuesday morning as traders seem reluctant to bet on higher prices, due to continued strength in US production, which undermines OPEC cuts. By 9.00 AM GMT Brent crude was trading at $63.11/bbl, 0.08% down compared to the previous settle, while WTI had lost 0.25% to stand at $56.62/bbl.
Money managers increased their net long positions in both ICE Brent and NYMEX WTI contracts last week. ICE Brent net speculative positions rose almost 13 million bbls last week, while NYMEX WTI net longs soared by 36.5 million bbls, following a gain of 46.4 million bbls the week prior.
Thomson Reuters Oil Research have assessed US seaborne crude oil imports at 5.18 million bpd for the previous week, a solid increase of more than 15%, from 4.48 million bpd the week prior. Tanker arrivals in PADD I, III and V were seen up with PADD I and V receiving 31.5% and 22.5% more crude w-o-w, while arrivals at PADD III increased by 6.1% to 2.53 million bpd. Overall, imports of crude oil likely stood at 8.26 million bpd, an increase of 880,000 bpd.
Refinery input was assessed at 16.43 million bpd, up by 122,000 bpd w-o-w. Crude oil exports were estimated to have declined by 160,000 bpd last week to stand at just above 700,000 bpd. Crude oil inventories likely increased by 5.2 million bbls last week.
A Reuters poll finds that gasoline stockpiles may have declined by an estimated one million bbls last week, while distillates have likely declined by 1.78 million bbls.
The Oil Research Team
Supply Chain & Commodities Research