DTN Oil Update
Oil Futures Rebound Despite US Crude Oil Inventory Rise
HOUSTON (DTN) -- Oil futures reversed losses from the previous trading session on Wednesday morning, despite a build in U.S. crude oil commercial inventories last week and expectations of ample supplies driven by additional output from some OPEC+ countries.
The front-month NYMEX WTI for May delivery rose by $0.62 to $62.89 bbl, while ICE Brent for June delivery increased by $0.53 to $66.65.
May RBOB gasoline futures climbed by $0.0083 to $2.0096 gallon, while the front-month ULSD futures contract rose by $0.0083 to $2.1352 gallon.
The U.S. Dollar Index dropped by 0.461 points to 99.175, against a basket of foreign currencies.
The Energy Information Administration reported Wednesday, April 23, that commercial crude oil stocks rose by 200,000 bbl to 443.1 million bbl last week. The figure was above the 4.57million bbl draw reported by the American Petroleum Institute on Tuesday, April 22, for the same reference week.
Total motor gasoline inventories fell by 4.5 million barrels in the week ending April 18, while distillate fuel stocks decreased by 2.4 million bbl last week.
In production, gasoline averaged 10.1 million bpd while distillate fuel output dropped to 4.6 million bpd, the EIA data showed.
Despite oil futures recovering Thursday morning from a steep fall seen in the previous session, the combination of abundant supplies and weak demand are expected to put pressure on crude prices in the short term. Kazakhstan, which produces nearly 2% of global crude output, was expected to continue increasing output, defying the OPEC+ position, as it "will prioritize its national interests over those of the OPEC+ group when deciding on oil production levels," reported Reuters on Wednesday.
