Oil Futures Prices Remain Unchanged Despite Bullish Inventory Data

Strategic Insights -

Crude oil futures prices on the New York Mercantile Exchange (Nymex) were unable to make decisive moves on Wednesday, despite a bullish inventory data report from the American Petroleum Institute (API). The API report showed that U.S. crude stocks fell by 6.2 million barrels last week, which initially fueled a price increase. However, as traders began to take profits, the price movement was not sustained. Meanwhile, the Qua Iboe platform offshore Nigeria, owned by Mobil Corp., will be shut for about seven weeks after a fire last week. Nigerian officials assured that the country will not fall below its official Organization of Petroleum Exporting Countries (OPEC) quota.

Key Takeaways:

  • The futures contract for March delivery of light, sweet crude climbed 28 cents per barrel in morning trading due to the API report.
  • The bullish inventories failed to push the contract out of the $18.10-$18.60 per barrel consolidation range.
  • March crude futures settled unchanged at $18.39 per barrel after trading between $18.18 and $18.67.
  • Mobil Corp.'s Qua Iboe platform offshore Nigeria will be shut for about seven weeks after catching fire.
  • Nigerian officials assured that the country will not fall below its OPEC quota.
  • March Brent crude on London's International Petroleum Exchange fell 7 cents to $16.79 per barrel, expanding the trans-Atlantic spread on March crude to $1.60.
  • February gasoline on Nymex dropped 0.35 cents to 57.25 cents per gallon.
  • March gasoline dropped 0.41 cents to 55.53 cents per gallon.
  • Despite a 1.6 million barrel distillate draw last week, February heating oil dropped 0.40 cents to 47.47 cents per gallon.
  • March natual gas dropped 2.4 cents to $1.361 cents per million British thermal units (MMBtu) on its first day as the near-month contract.

Statistics:

  • U.S. crude stocks fell by 6.2 million barrels last week.
  • March crude futures traded between $18.18 and $18.67.
  • March crude futures settled unchanged at $18.39 per barrel.
  • April crude slipped 4 cents to $18.18 per barrel.
  • May dropped 5 cents to $18.04.
  • March Brent crude fell 7 cents to $16.79 per barrel.
  • February gasoline dropped 0.35 cents to 57.25 cents per gallon.
  • March natural gas dropped 2.4 cents to $1.361 cents per MMBtu.

Sources:

  • American Petroleum Institute (API)
  • New York Mercantile Exchange (Nymex)
  • Mobil Corp.
  • Organization of Petroleum Exporting Countries (OPEC)
  • London's International Petroleum Exchange