• News
  • SAN DIEGO
  • Finance

WTI Trades Near 3-Week Low as Supplies Seen Rising; Brent Stable

March 11 (Bloomberg) -- West Texas Intermediate traded near the lowest price in more than three weeks amid speculation that crude stockpiles expanded in the U.S., the world’s biggest oil consumer. Brent was stable in London.

Futures were little changed in New York after losing 1.4 percent yesterday, the first drop in three days. Crude inventories are forecast to have risen by 1.85 million barrels last week as winter demand fades, according to a Bloomberg News survey before an Energy Information Administration report tomorrow. Stockpiles climbed to 363.8 million in the prior seven days, the highest level since December. WTI is trading near a technical indicator that supported prices last week.

“The expected effect on demand as freezing weather like the ‘polar vortex’ in the U.S. came to an end could potentially mean inventory builds in the Energy Department data tomorrow,” said Michael Poulsen, an analyst at Global Risk Management Ltd. in Middelfart, Denmark.

WTI for April delivery slipped 1 cent to $101.11 a barrel in electronic trading on the New York Mercantile Exchange as of 12:11 p.m. London time. The contract dropped $1.46 to $101.12 yesterday, the lowest close since Feb. 14. The volume of all futures traded was 3 percent below the 100-day average.

Brent for April settlement was up 24 cents at $108.32 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $7.20 to WTI on ICE. The spread closed at $6.96 yesterday.

Crude Processing

U.S. crude stockpiles have gained in the seven weeks through Feb. 28 as refiners reduced utilization to an average 87.4 percent of capacity, according to the EIA, the Energy Department’s statistical arm. Units are typically shut for maintenance in late winter before restarting in the spring.

Utilization rates were probably maintained in the week ended March 7, according to the median estimate of seven analysts surveyed by Bloomberg before tomorrow’s EIA report.

Gasoline stockpiles are projected to have slid by 2 million barrels, the survey shows. Distillate-fuel inventories, including heating oil and diesel, are expected to have fallen by 450,000 barrels.

The American Petroleum Institute is scheduled to release separate supply data today. The industry group in Washington collects information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the EIA.

WTI has technical support along its middle Bollinger Band, data compiled by Bloomberg show. This indicator, at about $100.65 a barrel today, is where futures halted an intraday drop on March 6 to $100.13, the lowest price last week. Buy orders tend to be clustered around chart-support levels.

Saudi Arabia, the world’s biggest oil exporter, increased crude production to 9.849 million barrels a day in February, from 9.767 million a day in January, according to a person with knowledge of the kingdom’s output. The Organization of Petroleum Exporting Countries will publish its monthly report on supply and demand tomorrow.

Leave Your Comment

Comments are moderated by SDDT, in accordance with the SDDT Comment Policy, and may not appear on this commentary until they have been reviewed and deemed appropriate for posting. Also, due to the volume of comments we receive, not all comments will be posted.

SDDT Comment Policy: SDDT encourages you to add a comment to this discussion. You may not post any unlawful, threatening, defamatory, obscene, pornographic or other material that would violate the law. All comments should be relevant to the topic and remain respectful of other authors and commenters. You are solely responsible for your own comments, the consequences of posting those comments, and the consequences of any reliance by you on the comments of others. By submitting your comment, you hereby give SDDT the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying and other information you provide via all forms of media now known or hereafter devised, worldwide, in perpetuity. SDDT Privacy Statement.

User Response
0 UserComments

Leave Your Comment

Comments are moderated by SDDT, in accordance with the SDDT Comment Policy, and may not appear on this commentary until they have been reviewed and deemed appropriate for posting. Also, due to the volume of comments we receive, not all comments will be posted.

SDDT Comment Policy: SDDT encourages you to add a comment to this discussion. You may not post any unlawful, threatening, defamatory, obscene, pornographic or other material that would violate the law. All comments should be relevant to the topic and remain respectful of other authors and commenters. You are solely responsible for your own comments, the consequences of posting those comments, and the consequences of any reliance by you on the comments of others. By submitting your comment, you hereby give SDDT the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying and other information you provide via all forms of media now known or hereafter devised, worldwide, in perpetuity. SDDT Privacy Statement.

Subscribe Today!