During the previous 3 weeks, the West Texas Intermediate has gone through its longest time period since February where it has seen a steady increase. Despite this, these past 3 days have been the opposite, making today the first time its value has risen in as many days due to concerns over a significantly diminished crude stockpile.
A report made by the American Petroleum Institute or API today claims that stockpiles in the US’ largest storage facility located at Cushing, Oklahoma was down as many as 1.51 million barrels of crude oil last week. This follows the trend in the last 16 weeks where Cushing levels decreased during 15 of those weeks.
This has caused each barrel of WTI to appreciate to $103.11 on the New York Mercantile Exchange, 39 cents more than its previous value. This after July contracts dipped yesterday to a month low of $102.72.
According to the Energy Information Administration or EIA, there were 23.2 million barrels at Cushing as of May 16. Not since December 2008, or 5 and a half years, has oil supplies been this low. Largely influencing this decline is the Keystone XL pipeline whose southern leg has been coursing crude to the Gulf Coast since January of this year.
Additional data from the government is expected out today showing an increase of 500,000 barrels. Previously in April, US crude registered a record peak of 399.4 million barrels, marking the highest level since the EIA started releasing statistics in 1982.
Also shown in the API release was an estimated drop of 1.44 million barrels of gasoline last week, but is yet to be confirmed by the EIA.
Similarly, European counterpart Brent oil rose by 11 cents to $109.92 per barrel on the ICE Futures exchange in London. This represents a premium with WTI of $6.98, lower than yesterday’s closing spread of $7.09.
Oil trends are still potentially up in the air as fears over the Ukraine crisis lingers. Latest news from Russia has them calling for anti-violence measures after pro-Russia rebels sustained heavy losses when Ukrainian government forces seized an occupied airport in its eastern region. The attack was made after newly elected Ukrainian President Petro Poroshenko made a statement of his intent to eliminate separatist rebels to restore stability in the region.
Ukraine is a key territory for Russia as it provides a channel to Europe for its oil and natural gas supplies.
The material has been provided by InstaForex Company – www.instaforex.com
During the previous 3 weeks, the West Texas Intermediate has gone through its longest time period since February where it has seen a steady increase. Despite this, these past 3 days have been the opposite, making today the first time its value has risen in as many days due to concerns over a significantly diminished crude stockpile.
A report made by the American Petroleum Institute or API today claims that stockpiles in the US’ largest storage facility located at Cushing, Oklahoma was down as many as 1.51 million barrels of crude oil last week. This follows the trend in the last 16 weeks where Cushing levels decreased during 15 of those weeks.
This has caused each barrel of WTI to appreciate to $103.11 on the New York Mercantile Exchange, 39 cents more than its previous value. This after July contracts dipped yesterday to a month low of $102.72.
According to the Energy Information Administration or EIA, there were 23.2 million barrels at Cushing as of May 16. Not since December 2008, or 5 and a half years, has oil supplies been this low. Largely influencing this decline is the Keystone XL pipeline whose southern leg has been coursing crude to the Gulf Coast since January of this year.
Additional data from the government is expected out today showing an increase of 500,000 barrels. Previously in April, US crude registered a record peak of 399.4 million barrels, marking the highest level since the EIA started releasing statistics in 1982.
Also shown in the API release was an estimated drop of 1.44 million barrels of gasoline last week, but is yet to be confirmed by the EIA.
Similarly, European counterpart Brent oil rose by 11 cents to $109.92 per barrel on the ICE Futures exchange in London. This represents a premium with WTI of $6.98, lower than yesterday’s closing spread of $7.09.
Oil trends are still potentially up in the air as fears over the Ukraine crisis lingers. Latest news from Russia has them calling for anti-violence measures after pro-Russia rebels sustained heavy losses when Ukrainian government forces seized an occupied airport in its eastern region. The attack was made after newly elected Ukrainian President Petro Poroshenko made a statement of his intent to eliminate separatist rebels to restore stability in the region.
Ukraine is a key territory for Russia as it provides a channel to Europe for its oil and natural gas supplies.
The material has been provided by InstaForex Company – www.instaforex.com
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