James Hyerczyk
Aug 28, 2020 01:54 PM GMT
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading slightly better on Friday as Hurricane Laura moved beyond the heart of the U.S. oil industry in Louisiana and Texas without causing any major damage to production and refining facilities.
At 13:30 GMT, October WTI crude oil are trading $43.13, up $0.09 or +0.21% and December Brent crude oil is at $46.12, up $0.11 or +0.24%.
With refineries spared from feared massive flooding, the initial assessment shows no damage to the upstream or downstream facilities. Additionally, crude oil has given back most of the storm premium and could return to its elongated holding pattern.
U.S. Energy Information Administration Weekly Inventories Report
On Wednesday, the EIA reported a crude oil inventory draw of 4.7 million barrels for the week to August 21. At 507.8 million barrels, oil inventories are 15 percent above the five-year average for this time of the year. Analysts had expected an inventory draw of 3.833 million barrels for the week to August 21.
In gasoline, the EIA estimated an inventory draw of 4.6 million barrels, compared with a decline of 3.3 million barrels a week earlier that sparked hopes the excessive supply of gasoline was being drained by recovering demand for fuels. Gasoline production last week averaged 9.5 million bpd, up from 9.4 million bpd in the previous week.
In distillate fuels, the EIA reported an inventory increase of 1.4 million barrels, after a modest build of 200,000 barrels a week earlier. Distillate fuel production rose last week, to 5.1 million bpd, compared with 4.7 million bpd a week earlier.
Refineries processed 14.7 million bpd of crude oi last week after run rates fell to 14.5 million bpd during the previous week. This week the numbers would likely be even lower as hurricane Laura forced the shutdown of several facilities on the Gulf Coast.
Daily Forecast
The markets are taking on a somewhat bearish tone after the rally from earlier in week failed to attract enough buyers to sustain the move. Furthermore, the weaker U.S. Dollar is also being ignored. Under normal conditions the news would be bullish for dollar-denominated crude oil.
Aug 28, 2020 01:54 PM GMT
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading slightly better on Friday as Hurricane Laura moved beyond the heart of the U.S. oil industry in Louisiana and Texas without causing any major damage to production and refining facilities.
At 13:30 GMT, October WTI crude oil are trading $43.13, up $0.09 or +0.21% and December Brent crude oil is at $46.12, up $0.11 or +0.24%.
With refineries spared from feared massive flooding, the initial assessment shows no damage to the upstream or downstream facilities. Additionally, crude oil has given back most of the storm premium and could return to its elongated holding pattern.
U.S. Energy Information Administration Weekly Inventories Report
On Wednesday, the EIA reported a crude oil inventory draw of 4.7 million barrels for the week to August 21. At 507.8 million barrels, oil inventories are 15 percent above the five-year average for this time of the year. Analysts had expected an inventory draw of 3.833 million barrels for the week to August 21.
In gasoline, the EIA estimated an inventory draw of 4.6 million barrels, compared with a decline of 3.3 million barrels a week earlier that sparked hopes the excessive supply of gasoline was being drained by recovering demand for fuels. Gasoline production last week averaged 9.5 million bpd, up from 9.4 million bpd in the previous week.
In distillate fuels, the EIA reported an inventory increase of 1.4 million barrels, after a modest build of 200,000 barrels a week earlier. Distillate fuel production rose last week, to 5.1 million bpd, compared with 4.7 million bpd a week earlier.
Refineries processed 14.7 million bpd of crude oi last week after run rates fell to 14.5 million bpd during the previous week. This week the numbers would likely be even lower as hurricane Laura forced the shutdown of several facilities on the Gulf Coast.
Daily Forecast
The markets are taking on a somewhat bearish tone after the rally from earlier in week failed to attract enough buyers to sustain the move. Furthermore, the weaker U.S. Dollar is also being ignored. Under normal conditions the news would be bullish for dollar-denominated crude oil.
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