Crude futures were seen trading slightly lower on Thursday, but remained lifted and near the highest price in a month as higher fuel demand in the US countered signs of a slowdown in the Chinese economy and the ongoing tension in Ukraine continues.
West Texas Intermediate (WTI) for May delivery declined 0.32% to $103.28 a barrel on the New York Mercantile Exchange at the time of writing. While the European benchmark Brent crude edged 0.38% lower to $107.57 a barrel on the ICE Futures Europe exchange at the same time.
US Crude Inventories
On Wednesday, reports from the Energy Information Agency (EIA) showed that US refiners supplied approximately 8.81 million barrels a day of gasoline in the last four weeks ending April 4, the highest rate since January 3. Crude stockpiles climbed by 4.03 million barrels last week, while supplies at Cushing, Oklahoma increased by 345,000 barrels, according to the report.
Distillate inventories, including heating oil and diesel, added 239,000 barrels. A separate report released by the American Petroleum Institute showed that crude stockpiles in the US rose by 7.08 million barrels in the last week.
Tensions in Ukraine
The ongoing tension between Ukraine and Russia continues to escalate between the countries, as the US Secretary of State John Kerry warned Russia that additional sanctions aiming at Russia’s energy, banking and mining sectors will be imposed against the country if Russia intervenes further in Ukraine.
China
Exports and imports in China unexpectedly dropped in March as the market worries that the economy of the world’s second biggest oil consumer could be slowing down.
China exports dropped by 6.6% in March, compared to analysts estimates of a 4.8% expansion. Meanwhile imports shrank by 11.3%, the General Administration of Customs confirmed today.
Libya
In Libya, holder of Africa’s largest reserves, the resumption of the country’s export terminals is delayed as the lawmakers met to discuss an amnesty for the rebels who seized the terminals.
Libya‘s output have dropped by more than 1 million barrels a day in the past year, making the country the smallest among OPEC’s 12 producers.
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