DTN Oil Update
Oil Futures Climbed After API Reports Larger Crude Draw
HOUSTON (DTN) -- The NYMEX WTI and ICE Brent futures contracts for February delivery rose on Wednesday as U.S. crude inventories continued falling last week, according to the American Petroleum Institute data released late Tuesday, Jan. 7.
Commercial crude oil supply fell 4.022 million barrels (bbl) in the week ended Jan. 3, API data showed. Crude oil stocks at the Cushing, Oklahoma, tank farm, the delivery point for NYMEX WTI futures, dropped 3.115 million bbl last week. In contrast, gasoline inventory surged 7.331 million bbl in the same reference week while distillate fuel supply rose 3.201 million bbl on the week, according to the API report.
The U.S. Dollar Index was trending higher Wednesday morning as it rose 0.57% to 109.25 compared to a basket of foreign currencies. The stronger dollar was supported by U.S. economic data showing an expansion of economic activity in the service sector for the sixth consecutive month and better-than-expected job opening data for November as it remained almost steady from the prior month.
The ISM Service index for December was at 54.1 compared to 52.1 in November, above market expectation of 53.4. But the ISM Prices index was at 64.4% in December, above the 58.2 recorded in November and the highest since January, which raised concerns about further inflationary pressures this year.
Wednesday the market will be focused on the release of the December Federal Open Market Committee FOMC minutes, which typically are published three weeks after the Fed announces its policy decision on interest rates. On Dec. 19, 2024, the Fed cut interest rates by 25 basis points and set a range of 4.25% to 4.50%, while suggesting there will be fewer interest rate cuts this year.
The NYMEX WTI futures contract for February delivery rose by $0.21 to $74.46 bbl and the February ICE Brent futures contract increased by $0.16 to $77.21 bbl. The front-month RBOB futures contract reversed Tuesday's losses and rose by $0.0057 to $2.0323 gallon while the ULSD futures contract for February shipments dropped by $0.0055 to $2.3608 gallon.
Maria Eugenia Garcia can be reached at Maria.Garcia@dtn.com
