DTN Oil Update
Oil Prices Rise as API Reports Declining US Crude Stocks
VIENNA (DTN) -- Oil prices rose Wednesday morning, after the American Petroleum Institute late Tuesday reported a sizable draw to commercial crude oil inventories in the United States. According to the industry report, commercial stocks declined by 2.4 million barrels week-on-week, with inventories in Cushing falling by 100,000 bbls.
Ahead of expiry, NYMEX-traded WTI for September delivery rose $0.80 to trade near $63.15 bbl, and ICE Brent for October delivery gained $0.70 to $66.49 bbl. The more actively traded WTI contract for October delivery added $0.69 to $62.46 bbl.
September RBOB gasoline futures advanced $0.0067 to $2.0957 gal, and the front-month ULSD contract increased $0.0210 to $2.2721 gal.
The U.S. Dollar Index softened by 0.149 points to 97.970.
Oil futures have been trading in a narrow channel over the past two weeks, with the occasional bullish headline lending some support against a largely bearish market outlook and widely shared oversupply expectations. Market participants are also gauging the likelihood of a Russia-Ukrainian peace deal and the impact of sanctions easement on Russian oil flows. While import embargoes and price caps have cut into Russian oil revenues, their impact on supply has so far remained rather limited.
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