Oil prices eased slightly Friday morning, after Brent rebounded to near $60/bbl during the previous trading session fueled by comments from Saudi Arabia’s Crown Prince supporting the extension of OPEC supply cuts. That said, WTI gains were capped by rising US crude output. This morning, Brent contract <LCOc1> was trading at $59.18/bbl as of 9:20 AM UKT, down by 12 cents from the previous settle. At the same time, WTI <CLc1> stood at $52.56/bbl, 8 cents down from the settle.
According to the latest PJK data, total oil product stocks stored in the ARA-hub dropped by 268,000 mt to 5.2 million mt for the week ending October 19th. Last week’s decline in total products was largely driven by a sharp drop in Gasoil stocks, which were seen down by 286,000 mt to 2.2 million mt, the lowest weekly volume since June 2014, due to higher exports, particularly to the Mediterranean region.
Gasoline stocks fell by 35,000 mt to 769,000 mt last week, standing slightly below the 5-year average, although still some 16% above levels seen at the same time last year. A larger-than-expected draw of 5.5 million bbl in US gasoline inventories recorded last week helped to support refining margins in Northwest Europe. Meanwhile, Fuel oil stocks recovered by 77,000 mt, following a sharp drawdown in the prior week, to hit 1.3 million mt, standing far above last year’s levels and the 5-year average.
The Oil Research Team
Supply Chain & Commodities Research