WTI oil futures pare losses after build in U.S. crude inventories
Investing.com – West Texas Intermediate oil pared losses in American trade on Thursday, despite data demonstrated that oil supplies while in the U.S. registered a larger-than-expected inventory build, per week impacted by the outcome of Hurricane Harvey.
Crude oil for October delivery over the Nyc Mercantile Exchange fell 10 cents, or 0.20%, to trade at $49.06 a barrel by 11:03AM ET (16:03GMT) in comparison to $48.95 before the report.
The U.S. Energy Information Administration said included in the weekly are convinced that crude oil inventories increased by 4.580 million barrels in the week ended September 1. Market analysts’ had expected a crude-stock build of four.022 million barrels, even though the American Petroleum Institute late Wednesday reported a supply build of 2.791 million barrels.
Supplies at Cushing, Oklahoma, the main element delivery point for Nymex crude, increased by 0.797 million barrels yesterday, the EIA said. Total U.S. crude oil inventories stood at 462.4 million barrels since a couple weeks ago, in line with website article, which the EIA regarded as “within the upper half the typical range in this time period of year”.
The report also established that gasoline inventories decreased by 3.199 million barrels, in comparison with expectations to get a draw of 5.000 million barrels, while distillate stockpiles fell by 1.396 million barrels, in comparison with forecasts for just a reduction in 3.063 million.
The report became available one day after usual resulting from Monday’s Labor Day holiday.
Elsewhere, to the ICE Futures Exchange working in, Brent oil for November delivery turned around and gained 7 cents, or 0.13%, to $54.27 by 11:08AM ET (15:08GMT), when compared with $54.16 ahead of the release.
Meanwhile, Brent’s premium towards the WTI crude contract stood at $5.25 a barrel by 11:09AM ET (15:09GMT), compared to a gap of $5.04 by close of trade on Wednesday.
Elsewhere on Nymex, gasoline futures for October delivery fell one cent to $1.6721 a gallon, while October heating oil rose 1.7 cents to $1.7769 a gallon.
Natural gas futures for October delivery fell 1.8 cents to $2.982 per million British thermal units.
Markets have been evaluating the outcome of Hurricane Harvey on supply and demand as operations in oil refineries, pipelines and shipping channels across Texas and Louisiana returned gradually immediately.
Traders also are keeping track of Hurricane Irma, ranked among the five worthwhile Atlantic hurricanes within the last few Eighty years.
The Category 5 hurricane battered Puerto Rico and devastated a series of small Caribbean islands late on Wednesday as well as being most likely to hit Florida by Sunday afternoon, a prospect containing roiled orange juice and gasoline futures markets in addition to shares of insurance carriers.
Two other tropical storms during the Atlantic, Jose and Katia, were declared hurricanes late on Wednesday.