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Petroleum

Oil Futures Fluctuate Amid Contradictory Inventory Numbers

Strategic Insights

— 1 min read

Oil futures in New York experienced a brief rally Wednesday due to bullish inventory numbers from the American Petroleum Institute (API), but momentum was lost as the day progressed and pressure from the heating oil contract weighed on the market. The API's positive crude and gasoline figures were counteracted by the Energy Information Administration's (EIA) data, which showed only a modest decline in gasoline stocks. The Nymex gasoline futures led the complex north early in the session, attributed to the market being oversold and players covering shorts. However, the April gasoline futures eventually settled at 46.85 cents/gallon, up 0.60 cents, while crude futures for April delivery ended down 8 cents at $14.18/bbl.

Key Takeaways:

  • The American Petroleum Institute (API) reported bullish inventory numbers, with a 3.2 million bbl decline in reformulated gasoline (RFG) stocks, supporting the Nymex gasoline contract.
  • The Energy Information Administration's (EIA) data showed a 900,000 bbl decrease in crude stocks and a 1.9 million bbl decline in gasoline stocks.
  • April gasoline futures peaked at an intraday high of 47.40 cents/gallon before settling at 46.85 cents/gallon, up 0.60 cents.
  • Crude futures for April delivery hit an intraday high of $14.56/bbl but ended up settling down 8 cents at $14.18/bbl.
  • April North Sea Brent futures on the International Petroleum Exchange ended down 4 cents at $12.96/bbl.
  • April Nymex heating oil was the thorn in the rally's side, ending down 0.56 cents at 40.27 cents/gallon.
  • Gulf Coast prices declined, with prices slipping about 3 cents in Louisiana and 2 cents in South Texas.

Statistics:

  • Crude stocks fell by just 900,000 bbl, according to EIA data.
  • Gasoline stocks dropped by 1.9 million bbl, EIA data showed.
  • Distillate stocks remained unchanged.
  • Refinery utilization rate rose 4.0 percentage points to 94.4% of capacity.
  • April gasoline futures peaked at an intraday high of 47.40 cents/gallon.
  • Crude futures for April delivery settled at $14.18/bbl, a drop of 8 cents.
  • April Nymex heating oil ended down 0.56 cents at 40.27 cents/gallon.
  • April Nymex Henry Hub gas futures contract settled at $2.172/MMBtu, up 3.5 cents.

Sources:

  • American Petroleum Institute (API)
  • Energy Information Administration (EIA)
  • New York Mercantile Exchange (Nymex)
  • International Petroleum Exchange (IPE)
  • GasFair conference in Houston

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