Oil prices in the US increased on Friday morning, as the shutdown of Keystone pipeline that connects Canada and the US tightened the market. Brent contract <LCOc1> was trading at $63.61/bbl as of 9:10 AM UKT, up by 6 cents from the previous settle. At the same time, WTI <CLc1> had gained 60 cents from the settle, trading at $58.62/bbl at the same time.
According to the latest PJK data, total oil product stocks stored in the ARA-hub decreased by 262,000 mt to 4.86 million mt for the week ending November 16th. All products, apart from Gasoil and Naphtha, recorded weekly decreases. Naphtha stocks recorded a w-o-w build of 56,000 mt last week, to a total of 232,000 mt. Gasoil inventories increased slightly by 22,000 mt to 1.95 million mt, after seven consecutive week of declines.
Fuel oil stocks declined by 18% or 238,000 mt last week, to 1.04 million mt, standing at the upper limit of the 5-year range. Gasoline stocks declined compared to the previous week by 58,000 mt, standing at 923,000 mt. Jet Fuel stocks went down last week by 44,000 mt to 704,000 mt, remaining above the levels monitored the previous year and close to the upper limit of the 5-year range.
The Oil Research Team
Supply Chain & Commodities Research