DTN Oil Update
Oil Futures Rise Despite Crude Oil Build and Weak Global Demand Outlook
HOUSTON (DTN) -- Oil futures recovered from losses seen in the previous trading session on Wednesday, despite expectations of weaker global oil demand and ample supply fundamentals, amid rising trade tensions.
The front-month NYMEX WTI contract rose this morning by $0.84 to $62.17 bbl, while ICE Brent futures contract for June delivery increased by $0.83 to $65.50 bbl. In refined products, May RBOB gasoline futures were at $2.0432 per gallon, up by $0.0188 from the previous session. The front-month ULSD futures contract rose by $0.0263 to $2.1047 gallon.
In contrast, the U.S. dollar index dropped by 0.066 points to 99.315, against a basket of foreign currencies, which include the euro, Japanese Yen and Canadian dollar, among others.
Yesterday (4/16) the American Petroleum Institute reported a weekly build of 2.4 million bbl in commercial crude oil inventories for the week ending April 11. In contrast, the crude oil stocks at Cushing, Oklahoma, tank farm, and the delivery point for New York Mercantile Exchange West Texas Intermediate futures, dropped by 349,000 bbl in the same period. Gasoline stocks also saw a 3 million bbl draw, while distillate fuel supply declined by 3.2 million bbl.
Meanwhile, the International Energy Agency cut its 2025 demand growth estimate by 300,000 bpd to 730,000 bpd, attributing the revision to "escalating trade tensions" that have "negatively impacted the economic outlook."
"With arduous trade negotiations expected to take place during the coming 90-day reprieve on tariffs and possibly beyond, oil markets are in for a bumpy ride and considerable uncertainties hang over our forecasts for this year and next," the IEA said.
OPEC's April oil market report, released Monday, trimmed its demand growth projections for this year and next by 150,000 bpd each, to 1.3 million bpd and 1.28 million bpd, respectively. Market participants remained focused on the planned OPEC+ production increase of 411,000 bpd in May.
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