Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. RELEVANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Hazloc Heaters
Copper Tip Energy Services
Hazloc Heaters
Copper Tip Energy


Oil Advances as Investors Track Crisis in Ukraine, Inventories


English Español 简体中文 हिन्दी Português
These translations are done via Google Translate
(Bloomberg) Oil recovered from its biggest one-day loss this year as investors attempted to assess whether the Ukraine crisis was easing after Russia said it had pulled some troops back from the border.

West Texas Intermediate rose above $93 a barrel. U.S. officials said they haven’t verified the claim that Russia is pulling back some troops and cautioned that an attack remains possible. Moscow has repeatedly denied it plans to invade its neighbor.

The American Petroleum Institute, meanwhile, said crude holdings at the storage hub in Cushing, Oklahoma fell 2.4 million barrels last week, according to people familiar with the figures. It’s the latest sign of dwindling inventories at key locations. Oil product stocks at a key Middle Eastern hub also plummeted last week.

The steady erosion of supplies has pushed gauges of market strength to their strongest levels in years, indicating near-term bullishness.

GLJ

Crude is trading near the highest level since 2014 as investors bet global demand is running ahead of supply, draining inventories and forcing traders to pay steep premiums to get their hands on prompt barrels. The rally has lifted product prices, including for gasoline. That’s fanning inflation and posing a thorny challenge for leaders including Biden, as well as central bankers.

GLJ

“Market participants are still willing to pay a sizable premium for oil that is deliverable at short notice,” said Carsten Fritsch, an analyst at Commerzbank AG.

Prices:
  • WTI for March delivery rose 1.8% to $93.69 a barrel by 9 a.m. in New York.
  • Brent for April settlement added 1.7% to $94.90.

The API also reported a draw in nationwide crude stockpiles, as well as slightly lower holdings of gasoline and distillates. If the group’s estimate for changes at Cushing proves to be accurate, inventories at the key hub would shrink to the least since 2018. Official U.S. government data is due later.

Related coverage:
  • The International Energy Agency urged OPEC and its allies to address a widening shortfall in their oil production as a volatile market sends crude prices rocketing toward $100 a barrel.
  • Iraq’s Federal Supreme Court ruled that Kurdistan shouldn’t produce and export oil and gas independent of the central government in Baghdad.
  • Nigeria’s state oil company ordered emergency imports of fuel to end shortages that have caused long queues at gas stations across Africa’s most-populous country.



Share This:



More News Articles


GET ENERGYNOW’S DAILY EMAIL FOR FREE