Business

Crude oil futures little changed after mixed EIA inventory data; ICE Brent up to $76.68/b

Crude oil futures were stable after Energy Information Agency(EIA) data showed a draw in US crude inventories and a build in product inventories. Since Thursday, futures trading have been less volatile than earlier in the week.

At 1215 GMT, November ICE Brent crude futures were up 18 cents from Thursday’s settle at $76.68/b, while the NYMEX October light sweet crude contract was up 16 cents at $67.93/b.

According to the EIA Thursday, US crude inventories fell 4.3 million barrels on the week ended August 31, exceeding analysts’ expectations of a 2.5 million barrel draw in a survey conducted by S&P Global Platts Tuesday.

However, the effects of the crude draw were countered by rising stocks in refined products. US distillate stocks jumped 3.12 million barrels, while US gasoline stocks rose 1.85 million barrels. Analysts had expected distillate stocks to rise only by 600,000 barrels, while gasoline stocks were expected to fall 1.5 million barrels, the survey showed.

“The news backdrop does not really point to any further price slide,” Commerzbank analysts said in a commodity note Friday, pointing to Iranian crude exports to India. India is one of the largest consumers of Iranian oil.

“It cannot survive without these shipments. However, India can be offered neither the same conditions that Iran does — low prices, longer payment times, virtually free transport — nor the quantities,” the analysts said.

Petromatrix said in a technical analysis that crude oil futures tried a rebound in the very early US hours but without enough conviction to break above $69.00/b WTI or 78.00/b Brent. “They stayed in stand-by mode until the release of the weekly statistics. After a brief moment of hesitation, crude oil started to fall due to the weight of the reported builds in products.” Platts

Pix: A crude oil carrying cargo