Oil Mixed in Morning Trade
NEW YORK (DTN) -- New York Mercantile Exchange spot-month oil futures moved shallowly mixed Wednesday morning after the American Petroleum Institute showed mixed weekly supply figures and ahead of a report by the Energy Information Administration's weekly report that's expected to show stock draws across the board.
In a report issued late Tuesday, API showed unexpected stock builds refined products and a stock draw for the week-ended Aug. 18 in the United States.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
It detailed a 1.4 million bbl stock build for gasoline, with distillate supply surging 2.05 million bbl. Those figures contrasted with forecast for stock draws of 2.0 and 500,000 bbl, respectively.
However, the report showed a 3.6 million bbl decline in domestic crude oil stocks, that if confirmed by Energy Information Administration's report it would be the ninth consecutive stock draw and a 19-month low.
Rising domestic crude production plus recovery in Libyan and Nigerian supplies have offset 1.8 million bpd in output cuts by the Organization of Petroleum Exporting Countries and their 10 non-OPEC allies. Both Libya and Nigeria are OPEC members and exempt from the supply cut agreement.
Libya's state-owned oil company said they restarted production and lifted a force majeure on 270,000 bpd Sharara crude declared last Sunday. Following the restart of the Libyan production, the trans-Atlantic arbitrage has narrowed slightly.
At 9:00 AM ET, the October WTI crude contract was 18cts lower at $47.65 bbl while October Brent crude contract on the IntercontinentalExchange eased 19cts to $51.68 bbl. September ULSD futures edged up 0.30cts to $1.5942 gallon while September RBOB futures eased by 0.13cts to $1.5895 gallon.
George Orwel can be reached at george.orwel@dtn.com
(BE)
Copyright 2017 DTN/The Progressive Farmer. All rights reserved.