Thursday, Sep 24, 2020 | Last Update : 01:20 AM IST

183rd Day Of Lockdown

Maharashtra122438091634833015 Andhra Pradesh6317495518215410 Tamil Nadu5473374919718871 Karnataka5268764233778145 Uttar Pradesh3588932895945135 Delhi2492592133045014 West Bengal2283021989834421 Odisha184122149379763 Telangana1726081419301042 Bihar169856155824870 Assam159320129130578 Kerala13863398720554 Gujarat1247671051913337 Rajasthan116881972841352 Haryana113075908841177 Madhya Pradesh108167836182007 Punjab99930754092860 Chhatisgarh8618347653680 Jharkhand7267358543626 Jammu and Kashmir65026421151024 Uttarakhand4177729000501 Goa2875322726360 Puducherry2319118065467 Tripura2227215441245 Himachal Pradesh124387836125 Chandigarh102987411123 Manipur9010683859 Arunachal Pradesh7385540813 Nagaland5544445110 Meghalaya4733252838 Sikkim2447190529 Mizoram158510120
  Business   Market  30 Apr 2020  Oil prices rise after US crude storage build slows

Oil prices rise after US crude storage build slows

REUTERS
Published : Apr 30, 2020, 8:42 am IST
Updated : Apr 30, 2020, 9:34 am IST

U.S. Energy Information Administration data showed U.S. crude oil inventories grew by 9 million barrels last week to 527.6 million barrels

 Oil prices rise on early signs of slowing U.S. glut build. AFP Photo()
  Oil prices rise on early signs of slowing U.S. glut build. AFP Photo()

NEW YORK: Oil prices surged more than 10% on Wednesday after U.S. crude stockpiles grew less than expected and gasoline posted a surprise draw, feeding optimism that fuel consumption will recover as some European countries and U.S. state ease coronavirus lockdowns.

Crude prices crashed earlier this month, with global fuel tanking roughly 30% due to efforts to slow the spread of the virus. To ease the growing glut, major oil producing-nations agreed in mid-April to cut output by nearly 10 million barrels per day. Shale producers and oil majors are also reducing production.

 

U.S. West Texas Intermediate (WTI) crude futures settled at $15.06 a barrel, jumping $2.72, or 22%. Brent crude futures settled at $22.54 a barrel, up $2.08, or 10.2%.

U.S. crude oil inventories swelled by 9 million barrels last week to 527.6 million barrels, about 7 million barrels below their record high, the Energy Information Administration said. The build was slightly less than the 10.6 million-barrel rise analysts had expected in a Reuters poll. [EIA/S]

"The crude oil number is a big number at the end of the day, but it's not as big of a number that we had for the last three weeks," said Bob Yawger, director of futures at Mizuho in New York. The slowing build has delayed U.S. crude storage from filling to the brim, Yawger said, a scenario that would likely send prices plunging into negative territory again.

 

"The time to total crisis mode has been kicked down the road a little bit," he said.

The data included a notable drawdown in U.S. gasoline stockpiles of 3.7 million barrels from record highs last week as a modest pickup in fuel demand offset a rebound in refinery output.

Gasoline demand over the past four weeks remained down 44% from a year earlier, but the drawdown suggested consumption declines may be leveling off. Overall fuel demand has dropped by 28% in the last four weeks.

While U.S. storage is rapidly filling, crude production cuts by U.S. shale producers - estimated by consultants Rystad Energy at 300,000 barrels per day (bpd) for May and June - should slow flows into tanks.

 

Regulators in Texas, the biggest U.S. oil producing state, will vote on May 5 whether to enact output cuts. Officials in North Dakota and Oklahoma are also examining possible cuts.

That would add to production curbs of almost 10 million bpd agreed by the Organization of the Petroleum Exporting Countries and other large producers including Russia.

Prices also got a boost from hopes for a demand recovery as European countries including France and Spain, along with several U.S. states planned to lift some lockdown restrictions soon.

"As long as we see openings in the economy, we will not see plunges like we saw a week ago," said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut. "But markets heading back up to pre-crisis days are going to be tough to come by."

 

Tags: crude oil prices, us oil pipeline, global oil storage, coronavirus lockdown, coronavirus impact, crude prices
Location: United States, Washington, Seattle