Oil prices fell on Wednesday morning, weighed down by a rebound in the greenback, after it hit three-year lows last week. Brent crude was trading at $64.62/bbl by 09.15 AM GMT, down by 0.97% from the previous settle. At the same time WTI was trading at $61.15/bbl, down 1.21%.
A recent Reuters poll found that US crude stocks likely built by 1.3 million bbl last week, a fourth consecutive week. Motor gasoline stockpiles are projected to have decreased by 0.6 million bbl. Distillates are expected to have decreased by almost 1.6 million bbl. Refinery utilisation are likely to have decreased by 0.7%, according to the poll.
According to industry sources the port of Novorossiysk, in particular the IPP terminal, halted loadings due to managerial conflict dispute. Sources indicate 1,000 between 2,500 rail cars await to be discharged to tankers. Vessel congestion in the port continues and an expected return to normal operations is unclear.
The port of Novorossiysk only resumed operations on February 13th because of a storm halting loading operations. Total exports of Urals were decreased by 2.77 mmbbl to 8.63 mmbbl for the week ending on February 18th, because of lower loadings from Primorsk and Ust-Luga, as Trafigura withdrew two offers for loading of Urals, at the price of Dated Brent $-0.85/bbl.
The Oil Research Team, EMEA
Supply Chain & Commodities Research