could start buying back crude oil for the SPR late this year, Reuters reported late Tuesday. Energy Secretary Jennifer Granholm said the U.S. The Biden administration, meanwhile, also still has to replenish the Strategic Petroleum Reserve, he added. dollar giving crude a tailwind,” he said. “We have recently seen a little weakness to the U.S. Going forward, Tariq Zahir, managing member at Tyche Capital Advisors, told MarketWatch that risks to crude prices are on the upside. The dispute is believed to be reducing regional supplies by 400,000 barrels to 450,000 barrels per day, analysts have said.
Overall, the oil market is “apprehensive because the banking crisis and liquidity is still a “bit sketchy,” said Phil Flynn, senior market analyst at The Price Futures Group, explaining why oil prices likely turned lower by the day’s settlement.Įven so, oil-market analysts pointed to factors that helped fuel the recent rebound in oil after prices fell to the lowest price in more than a year earlier in March.Ī legal dispute in Iraq between the Kurdistan Regional Government and the central government in Baghdad has disrupted crude exports via a Turkish pipeline and helped to boost global crude prices.
petroleum production fell by 100,000 barrels to 12.2 million barrels a day. That’s largely driven by prices at the pump on the national average being lower by 80 cents a gallon compared to this time last year, he said.Ĭrude stocks at the Cushing, Okla., Nymex delivery hub fell by 1.6 million barrels for the week, the EIA said, while total U.S. “Strength in implied demand for gasoline resulted in a solid stock draw, while an easing in implied distillate demand resulted in a build,” said Smith.ĭistillate demand remains lower year on year, down 10.1% year on year on the four-week average, while implied gasoline demand on the four-week average has finally clambered higher on a year-on-year basis, he said. Analyst surveyed by S&P Global Commodity Insights had forecast supply decreases of 4.8 million barrels for gasoline and 2 million barrels for distillates. The EIA report also showed a weekly inventory decline of 2.9 million barrels for gasoline, while distillate supplies edged up by 300,000 barrels. “Crude inputs hit their highest level so far this year as refiners exit spring maintenance.” “A combination of higher refining activity, lower imports and ongoing strength in exports has resulted in a large draw to crude inventories,” said Matt Smith, lead oil analyst, Americas, at Kpler, in emailed commentary. The American Petroleum Institute, a trade group, separately reported on Tuesday a 6.1 million-barrel weekly decline for crude stockpiles, Dow Jones reported, citing a source. On average, analysts forecast a decline of 5.5 million barrels, according to a survey by S&P Global Commodity Insights. The Energy Information Administration on Wednesday reported the largest year-to-date weekly decline in crude inventories.Ĭrude stockpiles fell by 7.5 million barrels for the week ended March 24, the EIA said. The global benchmark, lost 37 cents, or 0.5%, to $78.28 per barrel on ICE Futures Europe.ĭeclined by 1.6% to $2.6681 per gallon, while April heating oilĭeclined by 1.9% to end at $1.991 per million British thermal units on the contract’s expiration day, the lowest since September 2020. Prices traded as high as $74.37 during the session, the highest intraday level for a front-month contract since March 14, FactSet data show. West Texas Intermediate crude for May deliveryįell 23 cents, or 0.3%, to settle at $72.97 per barrel on the New York Mercantile Exchange.
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