🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

NYMEX crude edges lower in Asia as weak regional data weighs

Published 01/13/2016, 09:07 PM
Updated 01/13/2016, 09:09 PM
NYMEX crude weaker in Asia
LCO
-
CL
-

Investing.com - Crude oil eased in Asia on Thursday with mixed regional data acting as a dampener to sentiment.

On the New York Mercantile Exchange, WTI crude for February delivery eased 0.05% to $30.48 a barrel.

In Japan, the CGPI (corporate goods price index) is expected to show a fall of 3.5% year-on-year in December. As well, core machinery orders for November year-on-year likely fell 7.9%.

In Australia, comes jobs data including employment change with a drop of 12,500 jobs seen, and the unemployment rate expected up to 5.9% from 5.8%.

Overnight, U.S. crude futures inched down on Wednesday paring earlier gains as domestic crude inventories increased slightly last week, defying expectations for a sharp draw after the American Petroleum Institute reported a considerable decline hours earlier.

Though U.S. crude futures surged as much as 3% in anticipation of a significant inventory reduction, Texas light sweet crude immediately turned negative following the release. WTI crude remained near 12-year lows from Tuesday's session, when it slipped below $30 a barrel for the first time since December, 2003.

On the Intercontinental Exchange (ICE), Brent crude for March delivery wavered between $29.99 and $31.83 a barrel, before settling at $30.20, down 0.75 or 2.38% on the day. At one point, brent futures fell below $30 a barrel for the first time since April, 2004. Much like its U.S. counterpart, North Sea brent has tumbled more than 15% in 2016, extending severe losses from last year.

On Wednesday morning, the U.S. Energy Information Administration (EIA) said in its Weekly Petroleum Status Report that U.S. commercial crude inventories rose by 0.2 million barrels last week for the week ending on January 8. At 482.6 million barrels, U.S. crude oil inventories remain near levels not seen for this time of year in at least the last 80 years. Investors initially expected a build of 2.5 million barrels on the week, before the API reported a weekly decline of 3.9 million barrels on Tuesday evening.

Gasoline inventories also surged by 8.4 million barrels, significantly higher than analysts' expectations for an increase of 2.7 million. It came a week after motor gasoline inventories soared by more than 10 million barrels, enjoying its largest weekly build since 1993. Distillate fuel inventories, meanwhile, jumped by 6.1 million barrels, remaining above the upper limit of the average range for this time of the year, according to the EIA. The sharp builds among gasoline and distillate fuel inventories reinforced a trend among refineries of turning cheap crude into product, while storing it until demand increases.

U.S. crude production also increased slightly by 8,000 barrels per day to 9.227 million bpd last week, remaining above the 9.2 million threshold for the third consecutive week. The modest increased pushed crude prices down even further in the final hour of Wednesday's session.

Crude prices worldwide have slumped by more than 70% over the last 19 months, amid a glut of oversupply on global energy markets. Oil prices are also down significantly since OPEC rattled markets with a strategic decision to maintain its output quota in November, 2014, in an apparent effort to crowd out U.S. shale producers. On Tuesday, OPEC president Emmanuel Kachikwu, Nigeria's top energy official, told CNN that the world's largest oil cartel is considering an emergency meeting over the next several weeks to address the prolonged downturn. Shortly after, delegates from the United Arab Emirates refuted the possibility of such a meeting.

OPEC is expected to keep its production levels constant until it meets again in early-June.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.