DTN Oil Update
Oil Eyes 2nd Straight Weekly Loss as Stockpiles Surge
SECAUCUS, N.J. (DTN) -- Crude and gasoline futures extended their declines on Friday, Feb. 13, morning on concerns over surging stockpiles and weakening demand. Also weighing was the U.S. desire for more talks with Iran, a development which eased geopolitical tensions.
The NYMEX WTI crude futures contract for March was down $0.26, or 0.4%, to $62.58 bbl. ICE Brent crude futures for April delivery fell $0.21, or 0.3%, to $67.31 bbl.
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For the week, WTI was headed for a 2% drop, adding to the prior week's loss of nearly 3%, while Brent was on track to fall 1.5% after the previous weekly decline of almost 4%.
Downstream, March RBOB futures contract eased $ 0.0130 to $1.9029 gallon. The front-month ULSD contract bucked the downtrend, rising by $0.0012 to $2.3939 gallon.
The U.S. Dollar Index rose by 0.093 points to 96.93 against a basket of currencies, adding to the pressure on commodities denominated in the greenback.
The latest monthly reading on the U.S. Consumer Price Index, due at 8.30 a.m. EST, could influence movements in oil later in the day as market participants factor the impact of inflation on the economy. The CPI is expected to have grown 2.5% year-on-year versus its December rise of 2.7% and against the Federal Reserve's long-term target of 2%.
Bearish sentiment intensified in energy markets this week after the U.S. Energy Information Administration reported a large weekly build in crude and gasoline inventories for the period ended Feb. 6.
U.S. crude stocks surged by 8.5 million bbl -- the most in a week since January 2025 -- after the prior week's 3.5 million bbl decline caused by the disruptions of Winter Storm Fern, the EIA reported Wednesday, Feb. 11.
U.S. gasoline balances climbed for the 13th straight week, rising 1.2 million bbl to 259.1 million as winter weather continued to suppress national driving demand.
The International Energy Agency, meanwhile, cut its 2026 global demand growth forecast to 850,000 bpd from a prior 930,000 bpd. The IEA forecast, contained in its February report issued Thursday, Feb. 12, maintained its 3.7 million-bbl glut projection for the year.
On the geopolitical front, U.S. President Donald Trump calmed energy markets by saying he favored diplomacy over military force with Iran, OPEC's fourth-largest producer and exporter with 3.2 million bpd.