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In trading on Thursday (10), crude oil futures prices closed lower as official data showed that US crude oil inventories increased after six consecutive weeks of decline in the previous week . As the outlook for demand remains unclear, the market is more concerned with supply. excess.
The EIA announced Thursday that in the week ending September 4, US crude oil inventories increased by 2 million barrels, the first increase in 7 weeks. Total US crude oil inventory excluding SPR is 504 million barrels, which is about 14% higher than the 5-year average at this time.
According to the S&P Global Platts survey, analysts expect, on average, crude oil inventories to fall by 500,000 barrels last week. API announced on Wednesday that last week (as of 4/9) US domestic crude oil inventories increased by 2.97 million barrels.
Due to the Labor Day holiday on Monday, each report is delayed one day.
Phil Flynn, a senior market analyst at Price Futures Group, said Hurricane Laura landed in the Gulf of Mexico in late August and the impact on US refineries was greater than expected. The EIA announced that the crude oil refining rate fell by 1.1 million barrels per day last week, causing crude inventories to rise for the first time in 7 weeks.
- The price of WTI crude oil futures for October delivery fell 75 cents, or nearly 2%, to settle at $ 37.30 a barrel.
- The price of Brent crude futures for November delivery fell 73 cents, or 1.8%, to settle at $ 40.06 a barrel.
Thursday’s EIA data also showed crude oil inventories in Cushing, Oklahoma, increased slightly by about 1.9 million barrels this week, and domestic oil production increased by 300,000 barrels to 10 million barrels per day. . At the same time, gasoline inventories fell 3 million barrels and distillate petroleum inventories fell 1.7 million barrels last week.
According to the S&P Global Platts survey, analysts expect, on average, gasoline inventories to fall by 2.5 million barrels and distillate (including thermal fuel) to rise by 300,000 barrels last week.
- The price of gasoline futures for October delivery fell 1.9%, closing at $ 1.0977 per gallon.
- Hot fuel oil futures for October delivery fell 2.1% to $ 1.0824 a gallon.
Tyler Richey, co-editor of Sevens Report Research, said the market is in “refinery maintenance season and the rate of operation will drop, eventually leading to a decrease in the supply of finished products (a proxy for demand). “.
“If we don’t see those demand indicators return to the level before Hurricane Laura makes landfall, it will be difficult for crude oil to return to the recent high, which is the mid-range price of over $ 40, especially considering the next supply. related to OPEC + policy. Aspect uncertainty “.
OPEC + will hold a market surveillance meeting on September 17.
Other energy products
- The price of natural gas futures for October delivery fell 8 cents, or nearly 3.5%, to close at $ 2,323 per million Btu.
The EIA announced that as of the week of September 4, the national supply of natural gas increased by 70 billion cubic feet, slightly more than expected. According to an S&P Global Platts survey, analysts expect natural gas supply to increase by an average of 64 billion cubic feet during the week.
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