DTN Oil Update
Oil Inches Up on Cushing, Diesel Inventory Draws
VIENNA (DTN) -- Oil futures edged up Wednesday morning, supported by an American Petroleum Institute report showing U.S. middle distillate inventories continuing to tighten last week. While API saw a small build in commercial crude oil inventories, a reported steep decline in stocks at the Cushing, Oklahoma tank farm lent additional support to WTI.
NYMEX-traded WTI for August rose $0.55 bbl to trade near $66.00 bbl, and ICE Brent for September delivery advanced $0.59 bbl to $67.70 bbl.
August RBOB gasoline futures gained $0.0068 to $2.1071 gallon, and the front-month ULSD futures contract jumped $0.0288 to trade near $2.3557 gallon.
The U.S. Dollar Index gained 0.268 points to 96.735.
API on Tuesday reported distillate fuel oil inventories declining 3.46 million barrels in the last week of June. If confirmed by U.S. government data later today, this steep draw would leave commercial diesel stocks more than 20% below the five-year average.
Crude oil stocks in Cushing, delivery point for WTI, shrank by 1.42 million bbls, according to API, marking the largest weekly decline in two decades.
Next, market participants are awaiting official inventory data from the Energy Information Administration, scheduled for 10:30 a.m. EDT release today.