NEW YORK (DTN) -- New York Mercantile Exchange oil futures moved lower in reaction to a report from the Energy Information Administration released midmorning showing a drop in demand for both crude and refined products during the week-ended Sept. 9 which nullified an unexpected drawdown in commercial crude supply.
At 11:00 AM ET, NYMEX October West Texas Intermediate crude futures dropped 91cts to $43.99 bbl, off a $43.74 near two-week low. November Brent futures on the IntercontinentalExchange declined 88cts to $46.22 bbl, off a $46.00 near two-week low.
In products trade, NYMEX October ULSD futures fell 3.69cts to $1.3860 gallon, near a two-week low of $1.3807. NYMEX October RBOB futures were 2.65cts lower at $1.3500 gallon, off a one-week low of $1.3374.
The EIA report was mixed overall, showing a 559,000 bbl stock draw for domestic commercial crude oil inventories versus forecast for a 2.7 million bbl stock build and a 1.4 million bbl increase reported Tuesday by the American Petroleum Institute. The decline follows a 14.5 million bbl plunge in crude stocks week prior due to storm-related disruptions.
EIA reported crude oil stocks at the Cushing, Oklahoma, delivery point for NYMEX WTI futures, were drawn down by 1.2 million bbl last week while crude imports soared by 993,000 bpd to 8.06 million bpd after sinking week prior to an 11-month low.
Gasoline stockpiles rose 566,000 bbl and distillate supplies increased by 4.6 million bbl, EIA reported, versus expectations for stock builds of 300,000 bbl and 2.0 million bbl, respectively.
Demand statistics constituted the bearish part of the EIA report as refinery crude oil inputs dropped 200,000 bpd and implied demand fell 189,000 bpd for gasoline and 412,000 bpd for distillates last week.
Today's decline by oil futures follows a selloff Tuesday triggered by a bearish monthly outlook released by the International Energy Agency that revised projected global demand growth for 2016 down 100,000 bpd to 1.3 million bpd for a 96.1 million bpd consumption rate. The IEA also highlighted that OPEC crude output is near a record high.
© Copyright 2016 DTN/The Progressive Farmer. All rights reserved.