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Crude oil futures pare losses after U.S. EIA inventory data

Published 06/15/2011, 10:41 AM
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Investing.com – Crude oil futures pared losses on Wednesday, bouncing off the daily low after a government report showed that U.S. crude oil inventories fell more-than-expected last week.

On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD99.08 a barrel during U.S. morning trade, easing down 0.2%. 

It earlier fell as much as 1.1% to trade at a daily low of USD98.11 a barrel, as a broadly stronger U.S. dollar pressured prices. 

The contract traded at USD98.81 prior to the release of the EIA data.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell more-than-expected in the week ended June 10, declining by 3.4 million barrels after falling by 4.8 million in the preceding week.

Analysts had expected U.S. crude oil inventories to decline by 1.5 million barrels.

Total U.S. crude oil inventories for the week ended June 10 stood at 365.6 million barrels, remaining above the upper limit of the average range for this time of year.

Total motor gasoline inventories increased by 0.6 million barrels, below expectations for a 1.0 million barrel increase. Stocks of distillate fuels including heating oil and diesel decreased 0.1 million barrels. 

U.S. crude oil imports averaged 8.6 million barrels per day last week, up by 38,000 barrels per day from the previous week. Over the last four weeks, crude oil imports have averaged nearly 9.0 million barrels per day, 657,000 barrels per day below the same four-week period last year.

U.S. crude oil refinery inputs averaged about 14.9 million barrels per day, 243,000 barrels per day below the previous week’s average.  Refineries operated at 86.1% of their operable capacity last week.

Gasoline production increased last week, averaging nearly 9.5 million barrels per day. Distillate fuel production decreased last week, averaging about 4.3 million barrels per day.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery tumbled 1.8% to trade at USD117.14 a barrel, up USD18.06 on its U.S. counterpart.

BNP Paribas said that the recent record-high spread between the crude and the Brent contract may be widening due to growing concerns about slowing economic growth in the U.S. compared to other parts of the world, which could hold back U.S. oil prices.

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