DTN Oil Update
Oil Futures Edge Up as OPEC Keeps Output Cuts
HOUSTON (DTN) -- Oil futures rose Thursday on expectations that OPEC's output cuts will continue in the short term and despite the Energy Information Administration and the American Petroleum Institute reporting a build on U.S. crude and gasoline inventories.
The front-month NYMEX WTI futures increased by $0.32 to $72.57 bbl while the April ICE Brent futures contract rose by $0.48 to $76.52 bbl. March RBOB futures contract fell by $0.0039 to $2.0826 gallon while ULSD futures contract for March delivery rose by $0.0429 to $2.4994 gallon.
The U.S. Dollar Index dropped by 0.79% to 106.27 against a basket of foreign currencies.
The EIA reported Thursday commercial crude oil inventories in the U.S. rose by 4.6 million bbl to 432.5 million bbl last week. The EIA data on commercial crude oil inventories were above the 3.3 million bbl build reported by API Wednesday, Feb. 19, for the same reference week.
Gasoline stocks dropped by 200,000 bbl week-over-week to reach 247.9 million bbl, which was lower than the 2.83 million bbl fall reported by API for the week ending Feb. 14, according to the EIA data.
Distillate fuel stocks recorded the steepest decline by dropping 2.1 million bbl to 116.6 million bbl last week. Distillate fuel inventory fell by 2.69 million bbl in the same week, API data showed.
Oil futures rose, driven by expectations of tight supplies as OPEC plans to extend voluntary oil output cuts of 2.2 million bpd, until April.
The 2.2 million bpd adjustments are expected to be gradually phased out on a monthly basis until the end of September 2026. This monthly increase can be paused or reversed subject to market conditions, as OPEC+ agreed during its December meeting.
OPEC+ also will extend voluntary adjustment cuts of 1.65 million bpd, announced in April 2023, until the end of December 2026.
