Crude Oil Prices, Following the release of the weekly crude oil inventory report from the US Energy Information Administration (EIA), West Texas Intermediate (WTI) Crude Oil futures contracts lost value during Wednesday’s trade. However, the worsening conditions in Yemen caused Brent Crude Oil futures to gain value during the day.WTI Crude Oil futures contracts expiring in June this year traded down by around 0.79% on Wednesday, closing the day’s trade at $56.16 per barrel, having lost around 45 cents per barrel. The futures contracts traded between $55.73 per barrel, and $57.19 per barrel during the trading session. Following WTI, the United States Oil Fund LP (ETF) (NYSEARCA:USO) traded down by around 0.46% to $19.36.
Brent Crude Oil front month futures had gained around 1.05% of their value during trading on Wednesday, translating into a $0.65 per barrel increase in prices of the contracts. The contracts ended the day at $62.73 per barrel. During the trading session, the futures contracts reached a high of $63.33 per barrel, and a low of $61.39 per barrel. As a result of the price movement of the futures contracts, the United States Brent Oil Fund, LP (NYSEARCA:BNO) traded up by around 1.3% to $22.89.
WTI, which is seen as the benchmark for crude oil prices in the US, traded in the red following the release of disappointing data from the EIA. The EIA said in its weekly crude oil report published yesterday that crude oil inventories in the US increased by 5.315 million barrels during the week ended April 17, while analysts were expecting an increase of 2.888 million barrels.
At the end of the week, crude oil inventories in the country stood at 489 million barrels, which is the highest-ever inventory level on EIA’s record. The Department of Energy’s statistical arm said in the report that the inventory levels at Cushing, the delivery point for WTI Crude Oil futures contracts, and the largest crude oil hub in the country, rose by 789,000 barrels during the week to 62.2 million barrels. According to Genscape estimates, 80% of the capacity at the hub has been reached.
The increased fears surrounding the crude oil storage capacity being reached in the country caused the crude oil prices in the US to trade down during trading yesterday. Last week, inventories increased by around 1.294 million barrels during the week ended April 10, compared to analysts’ estimates of 4.057 million barrels.
During trading on Wednesday, investors had ignored the positives highlighted in the crude oil report published by EIA. The EIA said that the production in the country had reduced by 18,000 barrels per day during the week, marking the second week where production has fallen. Data collected by Baker Hughes Incorporated (NYSE:BHI) showed that during the week ended April 17, the rig count in the country declined by 34 to 954 rigs, which had predicted the fall in crude oil production in the country.
Brent was rallying during trading yesterday as investors saw the exports from Saudi Arabia shipped through Yemen falling, as the conditions in the region worsen. The view came as Saudi Arabia, a day after releasing comments that it would be ending air strikes on Houthi rebels in the country, bombed the country.
Despite the negligible contribution from the country, Yemen’s geographical location makes it important for the crude oil market. Yemen shares a border with Saudi Arabia, and is located in a region through which Middle Eastern crude oil is shipped, hence turmoil in the country can curtail exports to the global crude markets.
WTI, which is seen as the benchmark for crude oil prices in the US, traded in the red following the release of disappointing data from the EIA. The EIA said in its weekly crude oil report published yesterday that crude oil inventories in the US increased by 5.315 million barrels during the week ended April 17, while analysts were expecting an increase of 2.888 million barrels.
At the end of the week, crude oil inventories in the country stood at 489 million barrels, which is the highest-ever inventory level on EIA’s record. The Department of Energy’s statistical arm said in the report that the inventory levels at Cushing, the delivery point for WTI Crude Oil futures contracts, and the largest crude oil hub in the country, rose by 789,000 barrels during the week to 62.2 million barrels. According to Genscape estimates, 80% of the capacity at the hub has been reached.
The increased fears surrounding the crude oil storage capacity being reached in the country caused the crude oil prices in the US to trade down during trading yesterday. Last week, inventories increased by around 1.294 million barrels during the week ended April 10, compared to analysts’ estimates of 4.057 million barrels.
During trading on Wednesday, investors had ignored the positives highlighted in the crude oil report published by EIA. The EIA said that the production in the country had reduced by 18,000 barrels per day during the week, marking the second week where production has fallen. Data collected by Baker Hughes Incorporated (NYSE:BHI) showed that during the week ended April 17, the rig count in the country declined by 34 to 954 rigs, which had predicted the fall in crude oil production in the country.
Brent was rallying during trading yesterday as investors saw the exports from Saudi Arabia shipped through Yemen falling, as the conditions in the region worsen. The view came as Saudi Arabia, a day after releasing comments that it would be ending air strikes on Houthi rebels in the country, bombed the country.
Despite the negligible contribution from the country, Yemen’s geographical location makes it important for the crude oil market. Yemen shares a border with Saudi Arabia, and is located in a region through which Middle Eastern crude oil is shipped, hence turmoil in the country can curtail exports to the global crude markets.
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