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Oil markets open slightly lower as market weighs mixed supply signals

Oil futures were down slightly Thursday morning, after rising sharply in the first half of the week, as traders weighed a larger-than-expected build in U.S. oil stocks

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Reuters 



oil
Photo: Bloomberg

were down slightly Thursday morning, after rising sharply in the first half of the week, as traders weighed a larger-than-expected build in U.S. against tightening global supply.

Brent futures were down 38 cents, or 0.35%, at $108.38 a barrel, and U.S. West Texas Intermediate futures were off 58 cents, or 0.56%, to $10.65 a barrel at 0046 GMT.

Both contracts on Wednesday had shrugged off a large build in U.S. crude inventories to end the trading session roughly 4% higher. The jump in prices came as worries of more disruptions to global supply continued to rattle the market.

The Energy Agency on Wednesday warned that from May onwards roughly 3 million barrels per day of Russian oil could be shut-in due to sanctions or voluntary embargoes.

At the same time, major global trading houses are also planning to curtail crude and fuel purchases from Russia's state-controlled oil companies in May, Reuters reported on Wednesday.

Despite signals that global supply disruption will persist, in the U.S. rose by more than 9 million barrels last week, the U.S. Energy Information Administration said on Wednesday, driven in part by releases from the nation's strategic reserves. Analysts in a Reuters poll had anticipated just an 863,000-barrel build.

U.S. gasoline stocks fell 3.6 million barrels last week, far above anticipated levels, and distillate inventories also declined.

"Oil prices are looking very comfortable above the $100 level as U.S. and Chinese demand seems to be heading in the right direction," wrote Edward Moya, a senior analyst with OANDA.

 

(Reporting by Liz Hampton in Denver; Editing by Christopher Cushing)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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First Published: Thu, April 14 2022. 08:58 IST

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