Crude and refined product futures prices have backed off earlier highs but were still showing strong gains following release of the latest U.S. inventory and demand data.
Oil prices were ahead about $1/bbl at 11:45 a.m. EDT on Wednesday, about $1.50 off their earlier levels, with the December contract for U.S. benchmark West Texas Intermediate crude ahead 98cts to $82/bbl while the January contract rose by $1.08 to $81.58/bbl.
The January contract for European benchmark Brent crude was seeing gains of $1.06 to $86.08/bbl during its first session in the front-month position while February prices were ahead $1.04 to $85.49/bbl.
Diesel futures were seeing the largest gains of the morning, with the December ULSD contract rising 6.25cts to $2.9725/gal, about 2.75cts off earlier highs. The January contract was 5.35cts in the black to $2.9096/gal.
Gains for gasoline futures were below the 2ct/gal mark, with the December RBOB contract rising by 1.85cts to $2.2358/gal while January prices added a similar amount to $2.2302. The front-month contract has fallen about 5cts off its earlier peak.
The gains follow a report by the Energy Information Administration showing little change in U.S. petroleum inventories. Crude inventories rose by 800,000 bbl in the week ending Friday and are 5% below seasonal averages. Total gasoline supplies added 100,000 bbl to sit at 2% above where they normally are at this time of year. Distillate supplies fell by 800,000 bbl, placing them 12% below seasonal averages.
EIA reported gasoline products supplied during the week -- its proxy for demand -- at nearly 8.7 million b/d, down about 170,00 b/d from the week before but about equal to what was seen during the same week last year. Distillate demand was 3.68 million b/d, a 400,000 b/d decrease from a week earlier and about 600,000 b/d lower than this time in 2022.
U.S. refinery utilization was at 85.4% during the week, virtually unchanged since the week before as seasonal maintenance work continues at several major facilities.
Gasoline and diesel prices in most spot markets around the nation were following the futures' movement upward Wednesday, though gasoline gains in New York Harbor and San Francisco were only a few fractions of a cent.
Renewable Identification Number prices were seeing deep losses, with D6 ethanol and D4 biodiesel RINs falling by 3cts for a second day in a row. Both D4 and D6 RINs fell by more than 16cts during the month of October, with market players attributing the slide to soybean oil futures and their relationship to ULSD prices, which affects the economics of biofuel blending.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
-- Reporting by Steve Cronin, scronin@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
11-01-23 1353ET
