LONDON-Oil prices pulled back on Wednesday as the prospect of delays to U.S. interest rate cuts and a jump in U.S. crude stocks that trounced expectations offset a boost from a potential extension to OPEC+ supply curbs. Brent crude futures fell 76 cents, or 0.91%, to $82.89 a barrel by 1227 GMT. U.S. West Texas Intermediate futures (WTI) were down 83 cents, or 1.05%, at $78.04. Both benchmarks had fallen $1 in earlier trading.
Vandana Hari, founder of oil market analysis provider Vanda Insights, attributed the price falls to profit taking plus a combined response to a surge in U.S. crude stocks and continuing hopes of a Gaza ceasefire deal in coming days.U.S. crude stocks showed an 8.43 million barrel build in the week ended Feb. 23, according to market sources citing American Petroleum Institute (API) figures on Tuesday.That shattered expectations of a 1.8 million barrel build, according to analysts polled by Reuters on Monday.
Federal Reserve Governor Michelle Bowman had signalled on Tuesday that she was in no rush to cut U.S. interest rates, particularly given continuing inflation risks. Higher-for-longer rates could dampen economic growth and suppress demand for oil. Due Thursday is the January U.S. personal consumption expenditures (PCE) price index, the Fed’s preferred measure of inflation and a key factor in rate decisions.
“The power of inflationary expectations must not be underestimated,” said Tamas Varga of oil broker PVM in a note on Wednesday. “In case tomorrow’s U.S. PCE reading comes in above expectations, a temporary top might have been found” for oil. Brent and WTI futures rose more than $1 a barrel on Tuesday after Reuters reported that the Organization of the Petroleum Exporting Countries and allies led by Russia (OPEC+) will consider extending voluntary oil output cuts into the second quarter.
Analysts at ANZ Research said that such a move by OPEC+ would be likely to tighten the market.Powered by Related Articles Oil stable as economic fears balance OPEC+ cuts, U.S. stock draw Oil surges more than $1 as tight supply dominates Oil prices rise over 2%; focus on OPEC+, storm hit Kazakh output Oil prices stabilise after slump on underwhelming OPEC+ cuts Brent, US crude futures climb over 2% as OPEC cuts expected Explore Oil & Gas 360 U.S. rig count had a decrease of 3 this week, at 620 Weekly Gas Storage:Inventories decrease by 154 Bcf U.S. rig count had an increase of 1 this week, at 620 U.S. rig count had an increase of 5 this week, at 626 Weekly Gas Storage:Inventories decrease by 140 Bcf.
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RT=Real-Time, EOD=End of Day, PD=Previous Day. Market Data powered by QuoteMedia. Terms of Use.Russian authorities on Tuesday announced a six-month ban on gasoline exports from March 1 tocompensate for rising demand from consumers and farmers and to allow for planned refinery maintenance.
Source:https://www.oilandgas360.com