WTI at $59 as U.S. Crude Draw Offset by Global Oversupply


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, N J (DTN) -- Crude futures settled down more than 2% Wednesday as 
market participants looked beyond a weekly inventory drop reported by the U.S. 
Energy Information Administration to focus on global oversupplies, including 
Russia's planned output hike.

   The NYMEX WTI contract for December delivery settled down $1.30, or 2.1%, at 
$59.44 bbl after a session low at$ 58.77. ICE Brent for January delivery fell 
by $1.36, or 2.1%, to $63.53 bbl after an intraday bottom of $62.86.

   December RBOB gasoline futures closed down $0.0609 at $1.9321 gallon. 
Front-month ULSD futures finished down $0.054 at $2.6357 gallon, after soaring 
to a five-month high of $2.7089 on Tuesday (11/18).

   The U.S. Dollar Index hit a two-week high of 100.11 against a basket of 
currencies, adding to the negative sentiment in commodity markets.

   Commercial crude stocks declined by 3.4 million bbl to 424.2 million bbl, 
following the prior week's build of 6.4 million bbl, the EIA said in its Weekly 
Petroleum Status Report.

   Distillate oil inventories rose by 200,000 bbl to 111.1 million bbl in the 
week ending November 14, after a 600,000 bbl decline in the prior week. 

   Total motor gasoline inventories increased by 2.3 million bbl to 207.4 
million bbl in the profiled week, following a 900,000-bbl drop the prior week.

   The EIA report contrasted with the weekly crude draw of 4.4 million bbl that 
the American Petroleum Institute (API) reported on Tuesday (11/18) .

   Oil futures prices tumbled Wednesday morning after API data showed a 
1.5-million bbl build for gasoline and a 600,000 bbl increase for distillates 
for the week ended November 14.

   But crude prices barely recovered on the EIA report as the market remained 
focused on Russia's plans to increase oil production over the next few months, 
regardless of U.S. sanctions.

   Russia expects to fully meet its OPEC+ production quota by the end of 2025 
or early 2026 after being short of 70,000 in October, Deputy Prime Minister 
Alexander Novak said Wednesday.

   The impact of Western sanctions, along with Ukraine drone attacks, on Russia 
have supported oil prices in recent weeks despite persistent forecasts for 
higher global supply.




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