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WTI oil futures pare gains after surprise build in crude inventories

Published 05/04/2017, 15:34
Updated 05/04/2017, 15:43
© Reuters.   U.S. crude oil inventories rise 1.566 million vs. forecast for 0.435 million draw
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Investing.com – West Texas Intermediate pared gains in North American trade on Wednesday, after data showed that oil supplies in the U.S. registered a surprise inventory build, while gasoline and distillate stocks both declined less than forecast

Crude oil for May delivery on the New York Mercantile Exchange gained 45 cents, or 0.88%, to trade at $51.45 a barrel by 10:34AM ET (14:34GMT) compared to $51.77 ahead of the report.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 1.566 million barrels in the week ended March 31. Market analysts' had expected a crude-stock draw of 0.435 million barrels, while the American Petroleum Institute late Tuesday reported a 1.83 million barrels decline in stockpiles.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 1.413 million barrels last week, the EIA said. Total U.S. crude oil inventories stood at 535.5 million barrels as of last week, according to the press release, which the EIA considered to be “near the upper limit of the average range for this time of year”.

The report also showed that gasoline inventories decreased by 0.618 million barrels, compared to expectations for a draw of 1.422 million barrels, while distillate stockpiles fell by 0.536 million barrels, compared to forecasts for a decline of 1.016 million.

On the ICE Futures Exchange in London, Brent oil for June delivery traded up 49 cents, or 0.90%, to $54.66 by 10:37AM ET (14:37GMT), compared to $54.94 before the release.

Meanwhile, Brent's premium to the WTI crude contract stood at $3.23 a barrel by 10:38AM ET (14:38GMT), compared to a gap of $3.14 by close of trade on Tuesday.

Elsewhere on Nymex, gasoline futures for May slipped 0.4 cents, or 0.2%, to $1.720 a gallon, while May heating oil rose 1.7 cents to $1.609 a gallon.

Natural gas futures for May delivery dipped 1.9 cents to $3.312 per million British thermal units.

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