Oil loses ground on supply increase
Oil lost ground after government data showed US crude and gasoline supplies shrinking less than forecast by an industry report.
Futures in New York closed down 0.5% Wednesday (17 April) after the Energy Information Administration (EIA) said American oil stockpiles shrank for the first time in four weeks. Gasoline stocks fell as well, but both declines were below American Petroleum Institute (API) estimates that had lifted the market earlier.
Oil has climbed more than 40% this year as the Organization of Petroleum Exporting Countries (OPEC) and its allies cut production and US sanctions on Iran and Venezuela further tightened supply. The curbs have been so successful they have spurred worries the cartel could be pushing crude prices too high, increasing risks of a backlash from US President Donald Trump.
West Texas Intermediate for May delivery fell 0.45% to USD63.76 a barrel on the New York Mercantile Exchange. Brent for June settlement lost 0.14% to USD71.62 a barrel on the London-based ICE Futures Europe exchange.
The EIA found US oil stockpiles fell by 1.4m barrels last week (ended 12 April). The figure may ease concerns about American production overwhelming the market but was also less than half what API had found. Gasoline inventories shrank by 1.17m barrels, the ninth straight weekly decline. Crude input at refineries declined.
While fears about the global economy have restrained oil’s rally, there have been recent signs that growth is holding up. China said Wednesday that its first-quarter gross domestic product rose 6.4% from a year earlier, beating the 6.3% median estimate in a Bloomberg survey. – Bloomberg News.
This information herein is published by DBS Bank Ltd. (“DBS Bank”) and is for information only. This publication is intended for DBS Bank and its subsidiaries or affiliates (collectively “DBS”) and clients to whom it has been delivered and may not be reproduced, transmitted or communicated to any other person without the prior written permission of DBS Bank.
This publication is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to you to subscribe to or to enter into any transaction as described, nor is it calculated to invite or permit the making of offers to the public to subscribe to or enter into any transaction for cash or other consideration and should not be viewed as such.
The information herein may be incomplete or condensed and it may not include a number of terms and provisions nor does it identify or define all or any of the risks associated to any actual transaction. Any terms, conditions and opinions contained herein may have been obtained from various sources and neither DBS nor any of their respective directors or employees (collectively the “DBS Group”) make any warranty, expressed or implied, as to its accuracy or completeness and thus assume no responsibility of it. The information herein may be subject to further revision, verification and updating and DBS Group undertakes no responsibility thereof.
All figures and amounts stated are for illustration purposes only and shall not bind DBS Group. This publication does not have regard to the specific investment objectives, financial situation or particular needs of any specific person. Before entering into any transaction to purchase any product mentioned in this publication, you should take steps to ensure that you understand the transaction and has made an independent assessment of the appropriateness of the transaction in light of your own objectives and circumstances. In particular, you should read all the relevant documentation pertaining to the product and may wish to seek advice from a financial or other professional adviser or make such independent investigations as you consider necessary or appropriate for such purposes. If you choose not to do so, you should consider carefully whether any product mentioned in this publication is suitable for you. DBS Group does not act as an adviser and assumes no fiduciary responsibility or liability for any consequences, financial or otherwise, arising from any arrangement or entrance into any transaction in reliance on the information contained herein. In order to build your own independent analysis of any transaction and its consequences, you should consult your own independent financial, accounting, tax, legal or other competent professional advisors as you deem appropriate to ensure that any assessment you make is suitable for you in light of your own financial, accounting, tax, and legal constraints and objectives without relying in any way on DBS Group or any position which DBS Group might have expressed in this document or orally to you in the discussion.
If this publication has been distributed by electronic transmission, such as e-mail, then such transmission cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The sender therefore does not accept liability for any errors or omissions in the contents of the Information, which may arise as a result of electronic transmission. If verification is required, please request for a hard-copy version.
This publication is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.
Singapore: This publication is distributed by DBS Bank Ltd (Company Regn. No. 196800306E) ("DBS") which is an Exempt Financial Adviser as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore (the "MAS").