DTN Oil Update
Oil Steady on Soft US Inflation; High Stocks Limit Rise
SECAUCUS, N.J. (DTN) -- Oil futures reversed early losses to settle marginally higher Friday, Feb. 13, as U.S. inflation slowed in January boosting prospects for the economy.
On a weekly basis though, the market posted a loss that added to the prior week's decline, pressured by stockpile builds in U.S. crude and gasoline, and easing geopolitical tensions in the Middle East, which is home to a third of global oil supply.
Headline inflation in the United States, as measured by the Consumer Price Index, grew at a slower pace of 2.4% year-on-year in January from 2.7% in December, the Bureau of Labor Statistics reported. Economists on Wall Street had expected a growth of 2.5%.
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Separately, Goldman Sachs has forecast U.S. economic growth at 2.8% for all of 2026 versus last year's 2.3%.
"Bullish inflation and economic numbers are always the swing factors in an oil market dictated by stockpiles and geopolitical tensions," John Kilduff, partner at New York energy hedge fund Again Capital, told DTN.
U.S. crude stocks surged by 8.5 million bbl last week, marking the largest weekly increase since January 2025, the Energy Information Administration reported. Gasoline balances rose 1.2 million bbl to 259.1 million, marking the 13th consecutive weekly climb.
The International Energy Agency cut its 2026 global demand growth forecast to 850,000 bpd from a previous 930,000 bpd. The agency maintained a projected 3.7 million-bbl global glut for the year.
U.S. President Donald Trump reiterated that he favored diplomacy over military force in getting a nuclear deal with Iran. The OPEC producer currently exports 3.2 million bpd and remains a focal point for geopolitical stability.
In drilling activity, data from Baker Hughes showed U.S. oil rigs unchanged at 551 this week, underscoring the steady output capacity at shale fields the EIA expects to contribute largely to the 13.6 million bpd production it has forecast for this year.
The NYMEX WTI crude futures contract for March settled up $0.05 at $62.89 bbl. ICE Brent crude futures for April delivery rose $0.17 to $67.69 bbl.
For the week, WTI fell 1%, adding to the prior week's loss of nearly 3%. Brent eased by 0.5% after the previous weekly decline of almost 4%.
Downstream, March RBOB futures contract eased $ 0.0068 to $1.9091 gallon. The front-month ULSD contract slid by $0.0072 to $2.3855 gallon.
The U.S. Dollar Index fell by 0.07 points to 96.77 against a basket of currencies.