Oil Futures Choppy After EIA Report

Oil Futures Choppy After EIA Report

NEW YORK (DTN) -- New York Mercantile Exchange oil futures remained choppy in midmorning trade, seesawing after a federal oil report showed a recovery in demand for gasoline and a steep draw for crude oil supplies in the United States.

The futures complex edged up slightly after the weekly oil report was issued at 10:30 AM ET by the Energy Information Administration but the contracts have since turned mixed, with the upside limited by a stronger dollar and concerns about Greece and the broader economy.

At 10:50 AM ET, NYMEX August WTI contract was up 18cts at $61.19 bbl, off a two-week high of $61.57. NYMEX July ULSD futures contract edged down 0.30cts to $1.9082 gallon, off a four-day high of $1.9304. NYMEX July RBOB futures contract slipped 0.48cts to $2.0718 gallon, off a three-day high at $2.1092.

EIA reported a 4.9 million bbl crude stock draw for the week-ended June 19, the eighth consecutive weekly stock draw and more than double an expected decline of 2.0 million bbl. The American Petroleum Institute late Tuesday reported a stock draw of 3.2 million bbl for the week reviewed.

Crude supplies the Cushing, Oklahoma, supply hub that also functions as the delivery point for NYMEX-traded West Texas Intermediate crude contract were drawn down 1.87 million bbl, surpassing an expected draw of 700,000 bbl while falling short of a 2.0 million bbl draw reported by the API.

On products, EIA detailed a surprise increase in gasoline stockpiles, up 680,000 bbl for the week reviewed versus an expected draw of 300,000 bbl. Distillate supplies increased 1.84 million bbl for the week, EIA reported, versus an expected rise of 200,000 bbl.

On demand, the EIA report showed a 479,000 bpd rebound for gasoline while distillates' demand plummeted, down 509,000 bpd for the week-ended June 19.

The oil futures complex has vacillated with every twist and turn in the Greek debt talks since pre-market trade. Negotiations resumed in the last two hours after a news report earlier this morning suggested creditors had rejected a new reform proposal by Greece.