DTN Oil Update
Oil Prices Retreat on Surprise US Inventory Build
VIENNA (DTN) -- Oil futures softened Wednesday morning, interrupting a four-day rally that saw prices jump 5%. The American Petroleum Institute on Tuesday reported U.S. commercial crude oil inventories rising 4.3 million bbls last week, surprising analysts who had largely forecasted a moderate draw to oil stocks.
NYMEX-traded WTI for June delivery was down $0.61 bbl to trade near $63.06 bbl, and ICE Brent for July delivery fell $0.60 bbl to $66.03 bbl.
June RBOB gasoline futures softened by $0.0115 to $2.1545 gallon, while the front-month ULSD futures contract was down $0.0091 to $2.1622 gallon.
The U.S. Dollar Index softened by 0.386 points to 100.440.
Oil prices started the week with a rally after the U.S. and China agreed to temporarily slash tariffs on mutual goods trade by 115 percentage points. Prices received further support from downward adjustments to production estimates and a lower-than-expected U.S. inflation report.
Market participants are awaiting official U.S. government data for confirmation of the surprise jump in crude oil inventories reported by API. The Energy Information Administration is set to release its weekly petroleum status report at 10:30 a.m. EDT Wednesday.
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