Oil Rallies on Bullish EIA Data

NEW YORK (DTN) -- New York Mercantile Exchange oil futures maintained gains in midmorning trade after the Energy Information Administration issued its supply report that showed bigger-than-expected stock draws for domestic commercial crude oil and gasoline for the week-ended Sept. 16 and stronger demand for refined products.

The EIA reported a 6.2 million bbl crude stock draw last week, a 3.2 million bbl stock decline for gasoline and a 2.2 million bbl stock build for distillate fuels. A survey showed the market expected a crude stock build of 3.7 million bbl, a gasoline stock increase of 500,000 bbl and a distillate fuels draw of 200,000 bbl for the week reviewed. EIA also reported gasoline implied demand rose 244,000 bpd during the week-end Sept. 16, with distillates implied demand up 155,000 bpd.

Shortly after 10:50 AM ET, NYMEX November West Texas Intermediate crude oil futures were 97cts higher at $45.02 bbl, off a $45.49 fresh one-week spot high. ICE November Brent futures moved 76cts higher at $46.64 bbl, off a $47.11 one-week high.

NYMEX October RBOB futures advanced 2.56cts to $1.3902 gallon after inside trade. NYMEX October ULSD futures were up 2.07cts at $1.4257 gallon, off a $1.44 one-week high.

Late Tuesday, the American Petroleum Institute reported crude stocks fell 7.5 million bbl, gasoline supplies declined 2.45 million bbl and distillate fuels stocks gained 1.42 million bbl last week. The API data boosted oil futures overnight into early this morning. Aside from bullish portions of the domestic oil supply reports, the oil futures were also boosted by an oil services workers’ strike today in Norway that could impact output of Brent crude from the North Sea.

George Orwel can be reached at george.orwel@dtn.com

(BAS)