WASHINGTON, D.C. (DTN) -- New York Mercantile Exchange nearest delivery oil futures and Intercontinental Exchange Brent futures moved shallowly mixed early Wednesday, shaking off overnight weakness spurred by bearish weekly statistics from the American Petroleum Institute.
In midmorning trade, Nymex February West Texas Intermediate futures were little changed near $52.20 barrel (bbl) while ICE March Brent edged up $0.20 to $60.84 bbl. Nymex February ULSD futures gained 1.6 cents to $1.8882 gallon, while February RBOB futures eased 0.28 cents to $1.4086 gallon.
API data released Tuesday afternoon showed a modest draw of 560,000 bbl in commercial crude inventories during the week ended Jan. 11 versus calls for 2.0 million bbl draw. The API reported gasoline stocks increased a more-than-expected 5.99 million bbl for the week profiled and distillate fuel inventory a larger-than-estimated 3.214 bbl.
The Energy Information Agency will issue its weekly supply report midmorning.
Midday Tuesday, EIA released its Short-term Outlook detailing a modestly oversupplied oil market for 2019 and 2020. EIA expects crude production from the Organization of the Petroleum Exporting Countries to decline 1.0 million barrels per day (bpd) from 2018 to 36.24 million bpd this year and to 36.05 million bpd in 2020, while non-OPEC oil production for this year is expected at 65.54 million bpd, revised a sharp 2.2 million bpd from December projections. For 2020, EIA forecasts non-OPEC oil production at 67.44 million bpd.
"EIA estimates that U.S. crude oil production averaged 10.9 million barrels per day in 2018, reaching its highest level and seeing its largest volume growth on record. EIA forecasts U.S. crude oil production to average 12.1 million barrels per day in 2019 and 12.9 million barrels per day in 2020, with most of the growth coming from the Permian region of Texas and New Mexico" said EIA.
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