UPDATE: US crude oil inventories surged by 6.5 million barrels over the past week, according to the latest report from the American Petroleum Institute (API). This significant increase comes as market pressures intensify, with prices for West Texas Intermediate (WTI) trading down at $60.61 per barrel in early European hours.
The announcement, made earlier today, highlights a growing trend in the oil market that is causing alarm among investors. Crude stocks in Cushing, Oklahoma have also risen, increasing by 400,000 barrels. As the market reacts, analysts from ING, including commodity experts Ewa Manthey and Warren Patterson, point to a broader risk-off sentiment prevailing across various financial markets.
Despite the bearish inventory news, refined product inventories showed some positive movement, with gasoline stocks decreasing by 5.7 million barrels and distillate stocks falling by 2.5 million barrels. This shift could provide some support for refined product prices amidst the crude oil downturn.
The situation has been further complicated by reports from Ukraine, which claims to have successfully targeted Lukoil’s Norsi refinery in Russia. This facility, with a capacity of approximately 340,000 barrels per day, is part of a larger pattern of Ukrainian drone strikes aimed at disrupting Russian oil production. The attacks, combined with existing sanctions, have contributed to rising prices for middle distillates, with the ICE gasoil crack trading at around $30 per barrel.
As the oil market continues to react to these developments, investors are closely monitoring the situation for further fluctuations. With ongoing geopolitical tensions and fluctuating inventory levels, the outlook for crude oil remains uncertain.
Market participants should prepare for potential volatility as the industry awaits the release of more comprehensive data in the coming days. The implications of these changes are vast, affecting not just prices at the pump but also the broader economy and international relations.
Stay tuned for more updates as this story develops.
