Oil prices bounced back on Friday morning following a sharp decline the day before, influenced by the bearish news regarding U.S distillate inventories. Brent contract <LCOc1> was trading at $62.51/bbl as of 8:45 AM UKT, up by 31 cents from the previous settle. At the same time, WTI <CLc1> had gained 17 cents from the settle, trading at $56.86/bbl at the same time.
According to the latest PJK data, total oil product stocks stored in the ARA-hub increased by 323,000 mt to 5.09 million mt for the week ending November 30th. All products, apart from Gasoil and Gasoline, recorded weekly increases. Naphtha stocks recorded a big w-o-w build of 103,000 mt last week, to a total of 305,000 mt. Gasoil inventories decreased slightly by 19,000 mt to 2.04 million mt, declining again close to the low levels reported on the 16th November.
Fuel oil stocks increased by 225,000 mt last week, to 1.18 million mt, standing at the upper limit of the 5-year range. Gasoline stocks declined compared to the previous week by 13,000 mt, standing at 869,000 mt. Jet Fuel stocks increased last week by 27,000 mt to 696,000 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