DTN Oil Update

Oil Futures Up on Low US Crude Inventories

HOUSTON (DTN) -- The NYMEX WTI futures contract for February delivery and the front-month ICE Brent futures contract edged up on Wednesday on data showing a draw of U.S. crude inventories last week.

Commercial crude oil supply fell 2.6 million bbl in the week ended Jan. 10, the American Petroleum Institute reported Tuesday, Jan. 14. API showed crude oil stocks at the Cushing, Oklahoma tank farm, the delivery point for NYMEX WTI futures, added 573,000 bbl.

Meanwhile, gasoline inventory rose 5.39 million bbl while distillate fuel supply increased 4.88 million bbl during the same reference week, API said.

The data helped to reverse losses recorded in the previous trading session in the oil futures market. â?¯

The front-month NYMEX WTI futures contract rose by $0.58 to $78.08 bbl, while March ICE Brent futures contract dropped by $0.45 to $80.37 bbl. February RBOB futures contract rose by $0.0261 to 2.1307 gallon. The front-month ULSD futures contract edged down by $0.0394 to $2.5647 gallon.

RBOB future contracts saw the steepest price increase as tight supplies are anticipated after Colonial Pipeline temporarily shut down its Line 1 gasoline line in Georgia to investigate a potential leak. The 5,500-mile pipeline system begins in Houston, Texas and terminates in Linden, New Jersey.

Separately, following a 0.3% increase for November, the U.S. consumer price index rose 0.4% in December, bringing the annualized rate of inflation for the all-item index to 2.9%, according to the U.S. Bureau of Labor Statistics data released Wednesday morning.

Inflation in December was above the market expectation of 0.3%.

Analysts have predicted inflation will remain sticky this year while the Federal Reserve is expected to delay interest rate cuts until October.

The U.S. Dollar Index dropped by 0.12% to 109.165 against a basket of foreign currencies.

Maria Eugenia Garcia can be reached at Maria.Garcia@dtn.com