DTN Oil Update
Oil Futures Mixed on Crude Draw, High Fuel Stocks
HOUSTON (DTN) -- Oil futures were mixed at the close of the week on Friday as U.S. crude stocks declined for the fifth consecutive week while gasoline and distillate builds jumped last week.
At nearly 2:30 p.m. EST, the February NYMEX WTI futures contract rose by $0.92 to $74.05 bbl, while the front-month ICE Brent futures contract rose by $0.65 to $76.58 bbl.
However, both crude benchmarks continued showing a three-month backwardation structure as global oil demand in 2025 is still expected to remain low as China's stimulus plan, set to start in the coming months, could be overshadowed by trade tariffs from the U.S. this year. China is the main buyer of crude worldwide.
In backwardation trading also, ULSD futures contract for January delivery dropped by $0.0029 to $2.3511 gallon, while the front-month RBOB futures contract rose by $0.0038 to $2.0557 gallon with a three-month contango structure.
Commercial crude oil inventories in the U.S. fell by 1.2 million bbl to 415.6 million bbl in the week ended Dec. 27, according to the Energy Information Administration data released Thursday, Jan. 2. The data was below the 1.442 million bbl draw reported by the American Petroleum Institute on Tuesday, Dec. 31, for the same week.
But gasoline and distillate fuel stocks jumped to 2.163 million bbl and 5.719 million bbl, respectively, due to increasing refining rates which rose to 92.7.
Separately, Baker Hughes weekly data showed the number of rigs in the United States actively drilling for oil fell by one to 482 as of Friday, down 19 compared year-over-year.
The bullish sentiment seen in the futures market Friday was driven also by the December U.S. ISM Manufacturing Index which came in stronger than expected as it rose to 49.3 from 48.4 recorded in November.
Maria Eugenia Garcia can be reached at Maria.Garcia@dtn.com
