NEW YORK (DTN) -- New York Mercantile Exchange oil futures briefly climbed before falling in midmorning trade after the Energy Information Administration issued a mixed weekly oil report showing stock draws and higher demand for refined oil products. The market remains volatile as traders continue to analyze the raft of data released over the past several hours.
At 11:14 AM ET, NYMEX September West Texas Intermediate crude futures dropped 62cts to $42.13 bbl. October Brent on the IntercontinentalExchange fell 63cts higher at $44.35 bbl. In products trade, NYMEX September ULSD futures shed 1.06cts to $1.3201 gallon. NYMEX September RBOB futures dropped 2.76cts to $1.3186 gallon.
The EIA data for the week-ended Aug. 5 showed a more-than-expected 2.8 million bbl gasoline stock draw to 235.4 million bbl, while demand for the fuel rose 17,000 bpd to about 9.8 million bpd. The data also showed a surprise draw for distillates, with the fuel down 2.0 million bbl to 151.2 million bbl, while demand for the fuel jumped 332,000 bpd to 3.9 million bpd. A survey showed the market expected gasoline stocks would fall 1.5 million bbl and distillate stocks would add 300,000 bbl.
The American Petroleum Institute Tuesday reported a gasoline stock draw of 4.0 million bbl and a distillate stock draw of 1.6 million bbl for the week. For crude, EIA reported crude stockpiles increased 1.1 million bbl to 523.6 million bbl, while refiner crude inputs, a proxy for demand, dropped 255,000 bpd for the week reviewed. The market expected a crude draw of 2.5 million bbl while API reported a crude stock build of 2.1 million bbl.
The Organization of Petroleum Exporting Countries in its most recently Monthly Outlook issued this morning raised the group's global demand estimate, echoing a similar forecast issued Tuesday by EIA's Short-term Energy Outlook report.
George Orwel can be reached at firstname.lastname@example.org
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