Oil prices declined on Wednesday morning, but the market remained well supported on the back of tightening supply and strong global demand. Brent <LCOc1> was trading at $68.87/bbl as of 9:10 AM UKT, down by 0.40% from the previous settle. Meanwhile, WTI <CLc1> had decreased by 0.27% from the previous settle, standing at $63.56/bbl at the same time.
According to a preliminary Reuters poll US Crude inventories are expected to have fallen by 3.59 million bbl to 415.9 million bbl for the week ending January 12th. Gasoline stocks are estimated to have increased by 3.59 million bbl to 240.9 million bbl. Total distillate inventories, which include heating oil and diesel, are estimated to have slightly decreased by 0.75 million bbl to a total of 142.3 mmbbl.
In addition, refinery utilisation rates in the US are estimated to have declined by 0.6%, standing at 94.7% of the total capacity for the week ending January 10th.
U.S Energy Information Administration reported on Tuesday that US oil output is expected to continue to rise in February with production from shale expected to rise by 111,000 bpd.
The Oil Research Team
Supply Chain & Commodities Research