UPDATE: US crude oil inventories have surged by 6.5 million barrels, sending shockwaves through the oil market and raising concerns of oversupply. The American Petroleum Institute (API) reported these significant increases earlier today, marking a pivotal moment for traders and investors.
The latest data reveals a rise in crude stocks at Cushing, Oklahoma, by 400,000 barrels, further adding to bearish sentiments in early trading hours. While ICE Brent settled 0.69% lower, the oil market felt the pinch from broader risk-off movements across global markets.
Market analysts from ING, including experts Ewa Manthey and Warren Patterson, noted the persistent downward pressure on crude oil prices. However, the decrease in refined product inventories—gasoline stocks fell by 5.7 million barrels and distillate stocks by 2.5 million barrels—offers some glimmer of support amid the turmoil.
The situation was exacerbated by reports of Ukrainian strikes on Lukoil’s Norsi refinery, which has a processing capacity of around 340,000 barrels per day. This incident is contributing to heightened prices in the refined products market, particularly middle distillates, with the ICE gasoil crack trading at approximately $30/bbl.
The implications of these developments are immediate and far-reaching. Traders must navigate the complexities of a market that is increasingly influenced by geopolitical tensions and supply chain disruptions. As the situation unfolds, experts are urging stakeholders to closely monitor inventory reports and global news related to oil production and refining.
What happens next? Analysts expect continued volatility in pricing as the market reacts to both API inventory figures and international developments. Investors should prepare for potential fluctuations in crude oil prices as the ramifications of today’s report resonate throughout the oil sector.
Stay tuned for further updates as this story develops.
