Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Markets

News : Markets

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

Oil gains after report shows larger than expected U.S. stock draws

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/16/2018 | 10:12pm CEST
File photo of Lukoil-owned Imilorskoye oil field outside West Siberian city of Kogalym

NEW YORK (Reuters) - Oil prices gained on Wednesday, shaking off the effects of a strengthening dollar, after an inventory report showed U.S. crude and gasoline stocks fell more than expected.

Brent crude futures gained 85 cents to settle at $79.28 a barrel, while U.S. crude futures gained 18 cents to settle at $71.49 a barrel.

"We rallied as the day went on," said Gene McGillian, manager of market research at Tradition in Stamford. "We continued to receive support from concerns about supply from the Iranian nuclear accord, Venezuela ... as well as the draw in crude," McGillian said.

U.S. crude inventories <USOILC=ECI> fell by 1.4 million barrels in the week to May 11, compared with analyst expectations for a 763,000 barrel decrease. [EIA/S]

U.S. gasoline stocks fell 3.79 million barrels, according to the U.S. Energy Information Administration's weekly report. Analysts had expected a 1.42 million barrel decline. That helped push gasoline futures to their highest levels since October 2014.

"The strength of gasoline, which made new highs, a 3-1/2-year high today ... helped pull up crude later in the session," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.

Exports hit a new one-week record, the EIA said.

The report pointed to healthy demand for U.S. crude, Commerzbank analyst Carsten Fritsch said.

In Venezuela, production plunged to 1.5 million barrels last month, its lowest level in decades due to its ongoing economic crisis.

Meanwhile, the dollar <.DXY> firmed to nearly a five-month high against a basket of other major currencies on Wednesday. A stronger greenback makes it more expensive to buy dollar-denominated commodities such as oil.

While futures prices climb, physical crude markets are sagging under the weight of unsold barrels. The 50 percent rise in oil prices in the last year is encouraging major companies such as ExxonMobil, Royal Dutch Shell, Chevron, BP and Total to increase output.

Spot crude oil cargo prices are at their steepest discounts to futures prices in years as sellers struggle to find buyers for West African, Russian and Kazakh cargoes, while pipeline bottlenecks trap supply in West Texas and Canada.

The International Energy Agency warned global demand is likely to moderate this year as crude prices near $80 a barrel and many key importing countries no longer offer consumers generous fuel subsidies.

In its monthly report, the Paris-based IEA cut its forecast for 2018 global demand growth to 1.4 million barrels per day, from 1.5 million bpd. [IEA/M]

"On balance, the report is tending more to the negative side. Demand for oil has been revised downwards for the second half of the year from April," PVM Oil Associates strategist Tamas Varga said.

(Additional reporting by Amanda Cooper in LONDON and Henning Gloystein in SINGAPORE; Editing by Mark Potter, Paul Simao and Susan Thomas)

By Ayenat Mersie

Stocks mentioned in the article
ChangeLast1st jan.
BP -1.92% 566.9 Delayed Quote.12.57%
CHEVRON CORPORATION -1.97% 126.28 Delayed Quote.2.13%
EXXON MOBIL CORPORATION -2.51% 80.1861 Delayed Quote.-1.63%
NASDAQ 100 -0.89% 6896.8432 Delayed Quote.7.35%
NASDAQ COMP. -0.80% 7372.1959 Delayed Quote.6.53%
S&P 500 0.32% 2733.29 Real-time Quote.1.47%
TOTAL -0.78% 52 Real-time Quote.18.36%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Markets"
04:47pLONDON MARKETS: FTSE 100 Drops As Pound Climbs After Strong Retail-sales Data
DJ
04:31pTSX flat as declines in energy offset gains in materials
RE
04:31pWall Street drops as Trump cancels North Korea meet, adds to tariff fears
RE
04:26pEUROPE MARKETS: European Stocks Fall After Trump Cancels North Korea Meeting
DJ
04:06pMARKET SNAPSHOT: Stock Market Extends Decline After Trump Cancels North Korea Summit
DJ
02:17pWALL STREET STOCK EXCHANGE : S&P 500, Nasdaq Futures -- Technical Analysis
DJ
01:15pFrom Housing to Stocks, Rising U.S. Bond Yields Are Being Felt
DJ
12:49pASIA MARKETS: Nikkei, Kospi Slide As Automaker Stocks Tumble On New Trump Tariff Threat
DJ
11:37aGlobal Auto Stocks Fall on U.S. Tariff Concerns
DJ
11:28aEUROPE : European shares on the rise while autos stocks stall
RE
Latest news "Markets"
Advertisement