DTN Oil Update
Oil Futures Plummet After EIA Reports Crude Stocks Build
HOUSTON (DTN) -- â?¯Oil futures plummeted Wednesday, after the Energy Information Administration and the American Petroleum Institute reported a build in crude inventories last week.
The bearish sentiment in the oil futures market was fueled also by concerns about trade tariffs imposed by the United States on imported goods from China, Mexico and Canada.
The EIA reported commercial crude oil inventories in the U.S. rose by 3.6 million barrels (bbl) to 433.8 million bbl last week. This was larger than a 1.455 million bbl build reported by API Tuesday, March 5, for the same reference week. API also noted that at the Cushing, Oklahoma, tank farm -- the delivery point for NYMEX WTI futures -- rose 1.630 million bbl last week.
According to EIA, gasoline stocks fell by 1.4 million bbl week-over-week reaching 246.8 million bbl, in the week ended Feb. 28. This was below 1.249 million bbl drop reported by API for the same period.
Distillate fuel stocks fell 1.3 million bbl to 119.2 million bbl last week, according to EIA, the figure was below the 1.136 million bbl build API reported for the same week.
Refinery utilization dropped to 85.95% from 86.5% reported the prior week.
The front-month NYMEX WTI futures contract plummeted by $2.97 to $65.29 bbl, and the May ICE Brent futures contract dropped by $2.25 to $68.39. April RBOB futures contract fell by $0.0941 to $2.1001 gallon while the ULSD futures contract for March delivery dropped by $0.0896 to $2.1976 gallon.
The U.S. Dollar Index dropped by 1.28% to 104.410, against a basket of foreign currencies, hitting its lowest levels since Nov. 8.
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