Oil prices slid Wednesday morning as rising US inventories, poor economic data out of Asia and the strengthening US Dollar hampered sentiment. By 09.00 AM GMT Brent crude had declined to $66.49/bbl, 0.21% down from yesterday’s settle, while at the same time WTI was trading at $62.84/bbl, 0.27% down.
Chinese factory growth was reported at its lowest since July 2016, albeit the Lunar New Year, earlier in the month, disrupted operations. Additionally, industrial output declined the most in Japan since 2011. The US Dollar was seen trading higher Wednesday morning following a rather hawkish positioning of the Fed’s chair. The respective index was trading at 90.5 earlier today, applying pressure on commodities prices.
US crude stockpiles were reported up by 933,000 million bbls, according to an industry entity. A Reuters poll had projected an increase of 2.1 million bbls. Refinery crude runs fell by 209,000 bpd, according to the report. Gasoline stocks rose by 1.9 million bbls, compared with analysts’ expectations of a 190,000 bbls decline. Distillate stockpiles fell by 1.4 million bbls, versus an expected drop of 709,000 bbls.
Thomson Reuters Oil Research assessed refinery input at 15.97 million bpd last week, 137,000 bpd up w-o-w. Exports were assessed at 1.67 million bpd, down almost 400,000 bpd w-o-w, therefore bringing implied crude oil demand at 17.64 million bpd.
Crude oil imports were assessed at 7.14 million bpd, 121,500 bpd up w-o-w, which could lift overall supply to 17.41 million bpd. Thomson Reuters Oil research estimates that stocks of crude oil have likely declined by 1.57 million bpd last week.
The Oil Research Team
Supply Chain & Commodities Research