DTN Oil Update
Oil Futures Climb Over $2 on Inventory Draws, Weaker Dollar
TACOMA, Wash. (DTN) -- Oil futures settled more than $2 higher Wednesday afternoon, lifted by a weaker U.S. dollar and larger-than-expected draws in refined product inventories, despite a reported crude stock build and lowered global demand forecasts.
WTI crude for May delivery settled at $62.47 barrel (bbl), gaining $2.03 from Tuesday's $60.44. ICE Brent for June delivery settled at $65.90 bbl, up $1.23 from $64.67.
In refined products trade, May RBOB gasoline futures settled at $2.0434 gallon, up $0.0190 from $2.0244. ULSD for May delivery settled at $2.1154 gallon, increasing $0.0370 from $2.0784.
The U.S. Dollar Index settled at 99.245, down 0.717 points from 99.962.
On Tuesday, the American Petroleum Institute reported a weekly build of 2.4 million bbl in commercial crude oil inventories for the week ended April 11. Stocks at the Cushing, Oklahoma, delivery hub declined by 349,000 bbl. Gasoline inventories fell by 3 million bbl, while distillate supplies dropped 3.2 million bbl.
The International Energy Agency this week cut its 2025 oil demand growth forecast by 300,000 barrels per day (bpd )to 730,000 bpd, citing "escalating trade tensions" and a weakening economic outlook. OPEC's April report, released Monday, similarly trimmed demand growth projections for 2025 and 2026 by 150,000 bpd each, to 1.3 million bpd and 1.28 million bpd.
Market focus remains on the planned OPEC+ production increase of 411,000 bpd in May, as concerns persist over the balance between rising supply and sluggish demand.
