RBOB Futures Up after EIA Data

NEW YORK (DTN) --- New York Mercantile Exchange spot-month oil futures turned mixed after initially rising, with nearby RBOB and ULSD futures trading near one-week highs. Meanwhile the April West Texas Intermediate crude contract reversed lower after the Energy Information Administration showed steep draws for gasoline and distillate fuels stocks and signs of higher demand for gasoline and crude oil during the week-ended March 9.

The EIA's Weekly Petroleum Status Report detailed a more-than-expected 6.3 million bbl stock draw for gasoline supply to 244.8 million bbl and a more-than-expected 4.4 million bbl stock decline for distillates to 133.1 million bbl. Implied demand for gasoline soared 366,000 bpd to 9.64 million bpd for the week while distillates demand fell 94,000 bpd to 3.832 million bpd versus the week prior.

The agency reported a more-than-expected 5.0 million bbl jump in total crude oil inventories. At the Cushing supply depot in Oklahoma, the delivery point for West Texas Intermediate futures, crude supply rose for the first time in 12 weeks, up 338,000 bbl to 28.518 million bbl.

The EIA also reported domestic crude oil production rose again last week, up 12,000 bpd to a fresh record high of 10.381 million bpd in the week-ended March 9, up 1.272 million bpd year-on-year.

Near 11:00 AM ET, NYMEX April ULSD futures climbed 1.02cts to $1.8841 gallon, off a near one-week spot high of $1.8962. April RBOB futures advanced 2.56cts to $1.9119 gallon, off a near one-week spot high of $1.9212. NYMEX April WTI crude oil futures were 10cts higher at $60.81 bbl, while ICE May Brent also gained 10cts to $64.74 bbl.

Earlier, the Organization of Petroleum Exporting Countries in its latest monthly report said that total production by its 14 members tumbled by 77,000 bpd to 32.19 in February.

The Monthly Oil Market Report for March also showed non-OPEC oil supply for 2018 is revised 280,000 bpd higher from the month prior forecast, representing year-on-year growth of 1.66 million bpd to 59.53 million bpd total supply.

The U.S. liquids supply forecast for 2018 was revised up 160,000 bpd to show annual growth of 1.46 million bpd year-on-year on the back of higher than expected output of crude oil by 110,000 bpd, mainly from the major shale plays.

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