Oil Rally Extended on Bullish EIA Data
NEW YORK (DTN) -- New York Mercantile Exchange spot-month oil futures rallied in the immediate aftermath of data released by the Energy Information Administration, showing stock draws for crude oil and refined products in the United States.
The EIA's Weekly Petroleum Status Report, issued at 10:30 AM ET, partly confirmed data shown Tuesday by the American Petroleum Institute, as it detailed a 7.2 million bbl crude stock draw for the week-ended July 21 that was nearly three times the expected draw of 2.7 million bbl.
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API showed a 10.2 million bbl crude stock draw nationwide in its weekly report issued Tuesday, but mixed data for refined products.
The crude stock draw, reported Wednesday, included a crude stock decline of 1.7 million bbl at the Cushing, Oklahoma, delivery point for NYMEX West Texas Intermediate crude futures.
WPSR showed gasoline supply was drawn down by 1.0 million bbl, slightly below calls for a 1.2 million bbl stock draw. Distillate fuel inventories were shown to have tumbled 1.9 million bbl, short of an expected draw of 2.5 million bbl for the week-ended July 21.
On the demand side of the ledger, WPSR showed crude oil inputs, a proxy for demand, rose 166,000 bpd for the week reviewed, with implied demand up 229,000 bpd for gasoline and 42,000 bpd for distillates.
At 10:45 AM ET, the September NYMEX West Texas Intermediate crude oil futures contract was 87cts higher at $48.76 bbl, off a $48.87 fresh seven-week spot high. September Brent crude oil futures on the IntercontinentalExchange climbed 76cts to $50.96 bbl, off a $51.06 seven-week spot high.
The NYMEX August ULSD futures contract gained 2.26cts to $1.5911 gallon, near an eight-week spot high of $1.5930. August RBOB futures rose 1.22cts to $1.6084 gallon, near a $1.6094 intraday high.
George Orwel can be reached at george.orwel@dtn.com
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