Oil Remain Pressured After EIA Data

NEW YORK (DTN) -- New York Mercantile Exchange oil futures remained under pressure after the Energy Information Administration released a weekly oil report showing an unexpected crude stock build, but the gain was not as large as reported a day earlier by the American Petroleum Institute.

Data on demand was mixed, bullish for crude and bearish for oil products. Refinery crude oil inputs jumped 334,000 bpd to a 16.639 million bpd nearly three-month high. However, implied demand for gasoline tumbled 324,000 bpd and plunged by 457,000 bpd for distillate fuel during the week-ended Nov. 10, according to the EIA.

EIA's Weekly Petroleum Status Report for the week-ended Nov. 10 showed crude oil supply increased by 1.9 million bbl to 459.0 million bbl. That compares with estimates for a 3.25 million bbl stock draw while the API's report showed a 6.5 million bbl crude stock build for the week reviewed.

WPSR showed gasoline stocks rose 893,000 bbl and distillate supplies fell 799,000 bbl last week versus estimates calling for stock draws of 1.2 million bbl and 1.0 million bbl, respectively. API was mixed on product supply, showing a build of 2.4 million bbl for gasoline and a draw of 2.5 million bbl for distillates.

The EIA report showed U.S. crude oil production increased again last week, up 25,000 bpd to 9.645 million bpd, the highest production rate since May 1971.

The oil futures complex has also been weighed down by the International Energy Agency's decision to cut its global oil demand forecast for 2017 and 2018. The bearish report contrasted with a bullish forecast released day prior by the Organization of the Petroleum Exporting Countries.

At 10:55 AM ET, December West Texas Intermediate crude oil futures were down 44cts at $55.20 bbl. January Brent fell 52cts to $61.69 bbl on the Intercontinental Exchange. NYMEX December ULSD futures was down 0.88cts to $1.8982 gallon and December RBOB futures eased 1.69cts to $1.7443 gallon.

Earlier in the session, Bloomberg reported that Russia is lukewarm to any plans to reach a decision at OPEC's Nov. 30 meeting to extend the 1.8 million bpd in output cuts by both OPEC and 10 non-OPEC nations including Russia. Russia believes it's too early to make that decision.

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