Energy
Wednesday, May 15th, 2024 3:43 pm EDT
Key Points
- Commercial crude oil inventories in the U.S. fell by 2.5 million barrels last week, exceeding the anticipated draw of 543,000 barrels, as reported by the Energy Information Agency.
- Oil prices experienced an initial decline during the session following the International Energy Agency’s downward revision of the global demand growth forecast by 140,000 bpd to 1.1 million barrels per day, attributed to softened demand in developed economies in the first quarter.
- U.S. oil and Brent have observed declines of 5.4% and 6.86%, respectively, over the month. Additionally, OPEC+ is expected to scrutinize global inventories closely at its June meeting to assess the supply-demand balance, with some members having implemented voluntary production cuts of 2.2 million bpd to support crude prices.
U.S. crude oil prices remained steady on Wednesday following a notable decline in domestic stockpiles, which fell by 2.5 million barrels, surpassing expectations of a 543,000 barrel draw projected by analysts. However, earlier in the session, oil prices experienced a downturn after the International Energy Agency revised down its global demand growth forecast by 140,000 bpd to 1.1 million barrels per day, citing softened demand in developed economies during the first quarter. Consequently, U.S. oil and Brent have seen declines of 5.4% and 6.86%, respectively, for the month. Presently, West Texas Intermediate (WTI) crude oil for the June contract stands at $78.06 a barrel, up 5 cents, while the July contract for Brent crude is at $82.36 a barrel, down 2 cents. Year to date, U.S. crude oil has gained approximately 9%, whereas the global benchmark Brent has seen a 7% increase. RBOB Gasoline futures for the June contract are at $2.48 a gallon, up 0.9%, reflecting an 18% gain year to date. Meanwhile, natural gas for the June contract is at $2.34 per thousand cubic feet, up 0.09%, but has incurred a loss of about 6.64% year to date. Global crude inventories surged in March by 34.6 million barrels due to trade disruptions, leading to a post-pandemic high of oil on water, according to the IEA. Additionally, attacks by Yemen-based Houthi militants on shipping through the Red Sea have necessitated rerouting oil deliveries this year. Despite efforts to discharge oil on water to land, inventories continued to build in April, resulting in an increase in onshore stockpiles. Looking ahead, the IEA suggests that OPEC+ will closely monitor global inventories at its June meeting to assess the balance between supply and demand, particularly as some OPEC+ members have implemented voluntary production cuts of 2.2 million bpd to support crude prices.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/15/crude-oil-prices-today.html
