Crude oil held steady on Thursday above the $97.50 a barrel level as severe snow and ice storms in the Northeastern United States boosted demand for heating fuels, pushing last week’s distillate stockpiles lower than expected in the world’s biggest oil consumer.
The second winter storm of the week swept into the US Northeast, dumping snow as temperatures dropped. Meanwhile, the Energy Information Administration report yesterday showed that distillates, including heating oil and diesel, fell by 2.36 million barrels.
Meanwhile, gasoline stockpiles increased by 505,000 barrels last week compared with the expected rise by 1.15 million, and crude inventories rose by 440,000 barrels last week which was less than the lowest expectations.
Further support to oil prices was given by a pickup in the US services sector in January, with steady strength in private-sector hiring, suggesting the winter weather that affected the country over the few several weeks had a limited effect on the economy.
Inventors are now keeping an eye on the outcome of today’s European Central Bank policy meeting and whether policymakers would consider further stimulus to help the fragile economy, and UK’s interest rate decision.
Meanwhile, a batch of earnings reports from the US and the key jobs report on Friday from the states will keep markets volatile. Strong jobs numbers may determine the Fed to move ahead with slowing the stimulus measures which may hurt demand.
- WTI crude oil futures for March is trading around $ 97.57 a barrel after rising $0.19
- Brent futures for March settlement is trading around $ 106.37 a barrel after rising $0.12
- Natural gas is trading at $ 5.194 per cubic feet after rising 3.26%
- Gasoline is trading at $ 2.649 per cubic feet after rising 0.29%
- Heating oil (diesel) is trading at $ 2.9894 a gallon after falling 0.21%