10 July 2013 21:33 [Source: ICIS news]
HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for August delivery extended the previous session’s gains, settling at $106.52/bbl, up $2.99, in response to the weekly supply statistics from the Energy Information Administration (EIA) showing a substantial drawdown in crude and gasoline inventories.
Crude oil stockpiles have declined nearly 20m bbl in two weeks, according to EIA data, while refinery runs rose to 92.4% of capacity in order to satisfy domestic and export markets demand.
With the bottleneck at the storage hub in ?xml:namespace>
Sentiment that the crude de-stocking will continue as more barrels bypass the NYMEX contract delivery point at Cushing has strengthened the market’s backwardation, where front month material is more valuable than forward months.
Upside momentum also triggered technical buy-stops, lifting August crude to an intra-day high of $106.66/bbl, up $3.13, before settling just off the top of the range. WTI has gained over $5.00.bbl since the Fourth of July holiday and is now in search of a top but also in overbought territory and in need of a correction.
International oil benchmark Brent has been narrowing the spread to WTI and finished the day at $1.99. ICE Brent for August delivery settled at $108.51/bbl, up 70 cents.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections