Oil Futures Remain Under Pressure

NEW YORK (DTN) -- New York Mercantile Exchange spot-month oil futures remained lower in late-morning trade Thursday despite the U.S. Energy Information Administration's data showing stock draws for crude oil and distillates for the week-ended Oct. 6.

The EIA's Weekly Petroleum Status Report showed crude stocks declined by 2.7 million barrels (bbl) that surpassed estimates for a 1.25 million bbl draw. The draw was accompanied by a 1.1% increase in refinery runs to 89.2% of operable capacity.

On products, EIA detailed unexpected stock growth of 2.5 million bbl for gasoline while distillate supply declined a less-than-expected 1.5 million bbl. In addition, implied demand improved for gasoline while lower for distillates.

The mixed EIA report didn't have much impact on the futures market that was already under selling pressure from a bearish report issued late Wednesday by the American Petroleum Institute showing unexpected builds of 3.1 million bbl build for crude stocks and 2.0 million bbl for distillates.

Also this morning, the International Energy Agency largely maintained their forecast for global oil supply and demand for 2017 and in 2018.

At 11:20 a.m. EDT, NYMEX November West Texas Intermediate crude futures were down 91 cents to $50.39 bbl. December Brent crude on the ICE platform was 98 cents lower at $55.96 bbl. NYMEX November ULSD futures tumbled 3.22 cents to $1.7539 gallon and November RBOB futures fell 3.12 cents to $1.5780 gallon.

The futures complex rallied on Wednesday on the back of bullish demand and supply projections detailed in both the EIA's Short-term Energy Outlook and the Organization of the Petroleum Exporting Countries' Monthly Oil Market Report.

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