Crude oil prices fluctuated today after the Energy Information Administration reported an estimated inventory decline of 1.4 million barrels for the week to December 6. In fuels, however, the EIA estimated sizable builds.
The crude oil inventory figure compared with a draw of 5.1 million barrels for the previous week that pushed prices higher for a while but the gains soon got erased by the now chronic perception of weak global demand growth prospects.
A day before the EIA, the American Petroleum Institute had estimated inventory changes at a positive 499,000 barrels for the week to December 6.
Gasoline inventories added 5.1 million barrels in the first week of December, with production averaging 10 million barrels daily.
This compared with an increase of 2.4 million barrels for the previous week, when production averaged 9.5 million barrels daily.
In middle distillates, the EIA estimated an inventory build of 3.2 million barrels for the first week of December, with production at an average 5.2 million barrels daily.
This compared with a build of 3.4 million barrels for the previous week when production averaged 5.3 million barrels daily.
Prices, meanwhile, were trending higher earlier today on trader optimism about Chinese stimulus and expectations that the U.S. Fed will announce a new rate hike next week. That latter decision is now uncertain following the latest inflation figures, for November, which showed prices had added 2.7% on the year last month, which is above the Fed’s target of 2%. Even so, traders remain convinced the Fed will announce a new cut next week.
The gains that oil made earlier in the day were constrained, however, by the absence of details about China’s new stimulus plans besides the general reference to looser monetary policy. Some more specific support came from the latest import data from Beijing, which showed a 14% rise in crude oil shipments in November from a year ago.
By Irina Slav for Oilprice.com
Energy News Beat