Oil slips after U.S. crude stocks rise amid deep freeze hit to refiners

Oil slips after U.S. crude stocks rise amid deep freeze hit to refiners

Reuters  | Feb 24, 2021 09:40

Oil slips after U.S. crude stocks rise amid deep freeze hit to refiners

By Sonali Paul
MELBOURNE, Feb 24 (Reuters) - Oil prices fell in early trade
on Wednesday after industry data showed U.S. crude inventories
unexpectedly rose last week as a deep freeze in the southern
states curbed demand from refineries that were forced to shut.
Crude stockpiles rose by 1 million barrels in the week to
Feb. 19, the American Petroleum Institute (API) reported on
Tuesday, against estimates for a draw of 5.2 million barrels in
a Reuters poll. API data showed refinery crude runs fell by 2.2 million bpd.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were
down 55 cents or 0.9% at $61.12 a barrel at 0136 GMT, after
slipping 3 cents on Tuesday.
Brent crude LCOc1 futures fell 38 cents, or 0.6%, to
$64.99 a barrel, erasing Tuesday's 13 cents gain.
Investors will be awaiting confirmation from the U.S. Energy
Information Administration later on Wednesday that crude
inventories rose last week, despite the hit to shale oil
production amid the unprecedented icy spell in the U.S. south.
"The key question is how quickly does U.S. oil supply
recover. It looks like supply will recover faster than
refineries, and supply is going to outpace demand in the next
few weeks. That will give negative weight to the market,"
Commonwealth Bank analyst Vivek Dhar said.
The price retreat is being seen as a pause following a
rally of more than 26% to 13-month highs in both Brent and WTI
since the start of the year.
Prices have jumped due to the U.S. supply disruption and
supply discipline by the Organization of the Petroleum Exporting
Countries and allies, together called OPEC+, led by an extra 1
million bpd cut by Saudi Arabia.
At the same time stimulus spending to boost growth,
investors rotating into commodities, and hopes that the rollout
of vaccinations could lead to an easing of pandemic restrictions
are all buoying oil prices.


Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (Australia) English (South Africa) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.