Oil Prices Retreat on Surprise US Inventory Build


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- Oil futures softened Wednesday morning, halting a four-day 
rally that saw prices jump 5%. The American Petroleum Institute on Tuesday 
reported U.S. commercial crude oil inventories rising 4.3 million bbls last 
week, surprising analysts who had largely forecast a moderate draw to oil 
stocks.

   NYMEX-traded WTI for June delivery was down $0.61 bbl to trade near $63.06 
bbl, and ICE Brent for July delivery fell $0.60 bbl to $66.03 bbl.

   June RBOB gasoline futures softened by $0.0115 to $2.1545 gallon, while the 
front-month ULSD futures contract was down $0.0091 to $2.1622 gallon.

   The U.S. dollar index softened by 0.386 points to 100.440.

   Oil prices started the week with a rally after the U.S. and China agreed to 
temporarily slash tariffs on mutual goods trade by 115 percentage points. 
Prices received further support from downward adjustments to production 
estimates and a lower-than-expected U.S. inflation report.

   Market participants are awaiting official U.S. government data for 
confirmation of the surprise jump in crude oil inventories reported by API. The 
Energy Information Administration is set to release its weekly petroleum status 
report at 10:30 ET today.




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