Crude Volatile On US Inventories, And Iran Deal

Crude oil swings between gains and losses around the $92.00 level since the start of the week, and following yesterday’s gains, crude is seen weakening today, especially since the prospect of a rise in Iranian oil exports weighed.

After Iran and six major powers struck a fresh pact to curb Tehran’s nuclear program, the two parts seem to be moving ahead on an interim deal that eases some sanctions, which will add to global supply and depress oil prices.

Meanwhile, in the Energy Information Administration report today may show that crude stockpiles may shrink by 1.3 million barrels last week in the US, the world’s biggest oil consumer, which may support prices.

Gasoline inventories are forecast to have climbed by 2.5 million barrels last week and distillate inventories, including heating oil and diesel, probably rose by 1.25 million barrels. Crude supplies slid by 4.14 million, the American Petroleum Institute said yesterday.

Meanwhile, the US economy showed yesterday that retail sales climbed more than expected by 0.2% in December, confirming that consumer spending is strong and providing signs the world’s biggest economy will sustain its growth, which improved the outlook for oil demand.

Yet, the resumption of oil production at the El Sharara field in Libya is weighing on prices although the crisis in the country has not ended since the blockade at its eastern oil ports continues.

- WTI crude oil futures for February is trading around $ 92.58 a barrel after falling $0.01

- Brent futures for February settlement is trading around $ 106.30 a barrel after falling $0.09

- Natural gas is trading at $ 4.366 per cubic feet after falling 0.07%

- Gasoline is trading at $ 2.6139 per cubic feet after falling 0.32%

- Heating oil (diesel) is trading at $ 2.9383 a gallon after rising 0.07%