Crude Oil Brent (F) Futures Market News and Commentary
Aug WTI crude oil (CLQ19) on Wednesday closed down -0.84 (-1.46%), and Sep Brent crude oil (CBU19) closed down -0.69 (-1.07%). Aug RBOB gasoline (RBN19) closed down -0.0131 (-0.69%). The energy complex closed lower Wednesday on larger-than-expected builds in EIA product inventories. Wednesday's EIA report showed that gasoline stockpiles unexpectedly rose +3.565 million bbl (vs expectations for a -2.4 million bbl draw) and that distillate supplies rose +5.686 million bbl (vs expectations of +1.0 million bbl). However, the EIA report also had some bullish news as EIA U.S. oil inventories fell by -3.12 million bbl, slightly more than expectations of -3.0 million bbl. In addition, U.S. oil production last week fell by -2.4% w/w to a 4-month low of 12.0 million bpd because of Hurricane Barry's trek through the Gulf of Mexico, although production is expected to recover this week as oil rigs reopen. Oil prices continue to see support from Middle East tensions after Iran denied Tuesday's U.S. claim that Iran was willing to negotiate if some conditions are met. Iran has vowed retaliation for the UK's seizure of an Iranian oil tanker earlier this month although the UK has reportedly offered to return the tanker if the oil does not go to Syria. Wednesday's EIA data showed that U.S. crude oil inventories as of July 12 were +5.3% above the 5-year average, gasoline inventories were +2.1% above the 5-year average, and distillate inventories were -1.5% below the 5-year average.