Crude oil futures fall Rs 26 on weak global cues

Dec 07, 2017, 01:06
Crude oil futures fall Rs 26 on weak global cues

Distillates rose by 4.26 million barrels.

Crude oil prices held mostly steady in early Asia on Wednesday as the market mulled the latest United States industry weekly inventory estimates and monitored geopolitical risks.

West Texas Intermediate for January delivery was at $57.27 a barrel on the New York Mercantile Exchange, down 35 cents, at 9:46 a.m. London time.

WTI Crude Oil (Light Sweet) price at NYMEХ Stock Exchange down by 1.32% to $57.59 per barrel. Brent oil for February gave up $1.64, or 2.6%, to $61.22 a barrel on the ICE Futures Europe exchange, its lowest since November 2.

US crude inventories dropped by 5.48 million barrels last week, the API said Tuesday, according to people familiar with the data. A day later, however, the EIA reported a 3.4-million-barrel draw, more in line with analyst expectations. The US rig count climbed again for the week ending 1st December 2017.

Despite this, some analysts said they expected refining margins to remain healthy into 2018.

Gasoline stockpiles jumped by 6.8 million barrels for the week, while distillate stockpiles added 1.7 million barrels, according to the EIA.

Domestic refineries operated at 93.8% of operable capacity last week, up from 92.6% a week earlier, the EIA data showed.

On paper the report was mixed with the crude oil number bullish and the fuel numbers bearish. Inventories were at their lowest since October 2015.

US crude production continued to edge higher, with total domestic output at about 9.7 million barrels a day last week, up 25,000 barrels a day, according to the EIA.

Oil prices plummeted today, witnessing a free fall as weak equities clubbed with persistent profit selling pressure after recent gains hurt the sentiments. An extension had been largely priced in but rising US oil production has been a key concern for the market.

"Robust global demand and tight supplies should see Brent crude oil rise to $70 per barrel by mid-year (2018)", said Bank of America Merrill Lynch in its 2018 outlook.