Crude price rises as Cushing glut eases further

The price of crude oil has advanced today, as data from the US Energy Department shows another decline in oil supplies at Cushing, Oklahoma.

The Energy Information Administration (EIA), the reporting division of the US Energy Department, said today that crude oil inventories rose 68,000 barrels last week to 362.4 million, a smaller rise than had been expected by analysts polled by Bloomberg.

Stockpiles at Cushing, Oklahoma – important to the oil market as it is the price settlement point for WTI futures – fell 1.08 million barrels, a further sign that the operation of the southern section of the Keystone XL pipeline is helping to reduce the Cushing glut.

With TransCanada intending to increase the rate of flow through the pipeline by more than twofold throughout the course of the year, this trend for drawdowns at Cushing is expected to continue.

By mid-afternoon in New York, crude oil futures for April were trading up 0.78% at $102.66 a barrel.

Refineries operated last week at 88% of capacity, the highest rate in four weeks, yet gasoline inventories declined, falling 2.81 million barrels, in excess of the 1.25 million drop expected by a Bloomberg survey.  

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.