DTN Oil Update
Oil Futures Mixed Amid Weekly US Fuels Inventories Draw
HOUSTON (DTN) -- Oil futures were mixed on Wednesday after the Energy Information Administration (EIA) reported weekly declines on gasoline, diesel and jet fuel inventories, while crude stockpiles increased. Reports that Iran and Oman have agreed to establish a temporary maritime route for vessels transiting the Strait of Hormuz, weighed on oil crude benchmarks on the day.
Still, Iran's Deputy Foreign Minister Kazem Gharibabadi said Tuesday that the Strait won't be fully reopened until the United States fulfills its commitments under an interim peace deal signed in June, according to media reports.
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Ship tracking data showed that traffic through the chokepoint has slowed since Iran stepped up attacks on tankers, though some oil continues to move through a U.S.-protected corridor along the Omani coast.
Separately, the EIA reported that commercial crude oil inventories rose by 100,000 bbl to 428.9 million bbl during the week ended Aug. 21. The increase was way below the 4.2 million bbl build reported by the American Petroleum Institute on Tuesday, Aug. 25.
Meanwhile, total motor gasoline stockpiles fell by 2.5 million bbl to 206.8 million bbl during the week profiled, while distillate fuel inventories dropped by 2.2 million bbl to 103.4 million bbl in the same period, EIA data showed. Jet fuel inventories also fell by 500,000 bbl to 45.7 million bbl last week.
Fuel supply drawdown reported by federal data, put upward pressure on ULSD and RBOB futures contracts traded in the New York Mercantile Exchange.
The NYMEX RBOB September delivery climbed $0.0447 to $3.2976 gallon, while the front-month ULSD futures edged up by $0.0012 to $4.2450 gallon.
In contrast, the front-month ICE Brent futures contract fell $1.04 to $87.54 bbl, while the NYMEX WTI for October delivery fell $0.32 to $82.04 bbl.
The U.S. Dollar Index strengthened by 0.247 points to 99.09 against a basket of foreign currencies.
