DTN Oil Update
WTI at $58 as Putin Raises Tensions, ULSD Tumbles
SECAUCUS, N.J. (DTN) -- Crude futures rose Wednesday, Dec. 3, on Moscow's apparent lack of urgency in ending its war with Ukraine, which has resulted in U.S. sanctions on Russian oil.
The U.S. Energy Information Administration's report of builds across the board in crude, gasoline and distillate inventories for the week ended Nov. 28 trimmed some of the advance in oil prices.
The report also caused gasoline to reverse a rally from earlier in the day and deepened losses in ULSD, the proxy for diesel.
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The NYMEX WTI crude contract for January delivery settled up $0.31 bbl at $58.95 bbl. ICE Brent crude for February delivery advanced $0.22 to settle at $62.67 bbl.
Downstream, January RBOB gasoline futures dipped $0.053 to $1.8250 gallon. Front-month ULSD futures fell $0.0206 to close at $2.921, after falling earlier to $2.2752, its lowest since Oct. 23.
The U.S. Dollar Index declined 0.498 points to 98.90 against a basket of foreign currencies.
Crude prices rose after Russian President Vladimir Putin doused prospects for a quick diplomatic solution to Ukraine.
U.S. efforts to end the war has eased some of the geopolitical premium in oil and added to concerns that Russian oil, once free of sanctions, will add to global oversupply.
But Putin raised the ante in the conflict again on Tuesday, Dec. 2, by terming as unacceptable the demands of Ukraine's European allies. He also warned of reprisal attacks against those helping Kiev's strikes against Russian oil and energy infrastructure.
Commercial crude stocks rose by 600,000 bbl to 427.5 million bbl, following the prior week's climb of 2.8 million bbl, the EIA said in its Weekly Petroleum Status Report.
Distillate oil inventories climbed by 2.1 million bbl to 114.3 million bbl, after the prior weekly growth of 1.1 million bbl.
Total motor gasoline inventories, meanwhile, increased by 4.5 million bbl to 209.9 million bbl during the profiled week, adding to the prior week's rise of 2.5 million bbl.