Oil Futures Down After EIA Data

Oil Futures Down After EIA Data

NEW YORK (DTN) -- New York Mercantile Exchange oil futures moved lower after a federal report confirmed a seventh weekly crude stock build while weekly demand improved.

The Energy Information Administration report detailed a 4.2 million bbl crude stock increase, more than five times the 800,000 bbl draw analysts anticipated. The build was below the 6.2 million bbl week-over-week hike reported Tuesday by the American Petroleum Institute.

Products data were mixed, showing implied demand for gasoline up 204,000 bpd while distillates demand was down 193,000 bpd for the week. For crude oil, refinery inputs, a proxy for crude demand, rose 302,000 bpd for the week profiled.

Near 11:30 PM ET, NYMEX December WTI futures slid $1.09 to $41.80 bbl, off a 2-1/2-month spot low of $41.69 bbl.

NYMEX December ULSD futures shed 3.57cts to $1.4120 gallon, near a two-week low of $1.4116 gallon, and December RBOB futures tumbled 4.97cts to $1.2797 gallon, a two-week low.

The EIA report, delayed a day by the Veterans Day holiday, detailed a surprise 2.3 million bbl increase for crude stocks in Cushing, Oklahoma, delivery hub for NYMEX WTI crude. The market expected a draw of 500,000 bbl at Cushing. API also reported a build in Cushing last week.

For products, EIA reported a 2.1 million bbl stock draw for gasoline versus an expected 300,000 bbl draw, but lower than API's 3.2 million bbl draw.

EIA data shows a 352,000 bbl increase for distillate stocks, missing an expected draw of 1.3 million bbl and API's 500,000 bbl draw.

The oil market was already heavy on the back of a strong dollar and bearish data from the Organization of Petroleum Exporting Countries.

OPEC maintained its forecast from a month ago saying the global oil demand growth rate would slow next year due to economic weakness in emerging countries, while non-OPEC supply would also decline.

December ICE Brent futures fell amid long liquidation ahead of the December contract expiration slated for Friday (11/13).