Commodity Market: US Crude Oil retreats after a surprise increase in US gasoline inventories

Futures on US West Texas Intermediate Crude Oil snapped a two-day streak of gains on Thursday, after an official government report revealed the largest increase in US gasoline inventories since early February, which raised concerns over demand in the country at a time when oil supplies across the globe surge.

A report by the US Energy Information Administration (EIA) showed on Wednesday that US gasoline inventories had surged by 4.044 million barrels to 230 million barrels during the week ended on April 2nd, while confounding a consensus of estimates of a 0.221 million barrel decrease.

Still, US crude oil inventories were reported to have dropped by 3.522 million barrels to 502 million barrels during the week ended on April 2nd, while market consensus had pointed to a smaller drop – by 1.436 million barrels.

“Refiners may want to pull back on the run rate a bit to keep gasoline storage from challenging the all-time record,” Bob Yawger, director of energy futures at Mizuho Securities, was quoted as saying by Reuters.

Meanwhile, crude supplies across the globe are rising, as Russia’s production accelerated from average March levels at the beginning of April, while a possible lifting of some sanctions against Iran could also contribute to supply growth.

As of 8:20 GMT on Thursday WTI Crude Oil Futures were retreating 1.05% to trade at $59.14 per barrel, while moving within a daily range of $59.05-$59.68 per barrel. WTI Crude Oil Futures have edged up 0.25% so far in April, following a 3.80% drop in March.

Brent Oil Futures were inching down 0.06% on the day to trade at $62.86 per barrel, while moving within a daily range of $62.54-$63.06 per barrel. Brent Oil Futures have retreated 0.56% so far in April, following a 2.14% drop in March.

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $59.31
R1 – $60.50
R2 – $61.23
R3 – $62.42
R4 – $63.61

S1 – $58.58
S2 – $57.39
S3 – $56.66
S4 – $55.93

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $62.68
R1 – $63.74
R2 – $64.58
R3 – $65.64
R4 – $66.70

S1 – $61.84
S2 – $60.78
S3 – $59.94
S4 – $59.10

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News