Oil prices eased slightly Friday morning as the US dollar gained after the US Senate approved a budget blueprint for the 2018 fiscal year. However, prices remained supported by ongoing tension in the Middle East. Brent contract <LCOc1> was trading at $57.16/bbl as of 9:20 AM UKT, down by 7 cents from the previous settle. At the same time, WTI <CLc1> stood at $51.20/bbl, down by 9 cents from the settle.
According to the latest PJK data, total oil product stocks stored in the ARA-hub fell by 176,000 mt for the week ending October 12th. The largest weekly draw was recorded by Fuel oil stocks, which dropped by 205,000 mt to 1.25 million mt, as we tracked a VLCC tanker Maran Ariadne departing to Singapore. Having said that, last week’s fuel oil stocks remained well above levels seen at the same time last year and above the 5-year average.
Gasoil stocks eased slightly by 22,000 mt to 2.5 million mt, as traders have been discouraged to store the product given a backwardated structure of this market. Naphtha stocks slipped by 11,000 mt, supported by strong European petrochemical demand. Gasoline stocks slightly increased by 10,000 mt, standing at 804,000 mt.
The Oil Research Team
Supply Chain & Commodities Research