Catch up with the latest news on oil trading with Finbok.
Find out how US crude inventories grew by a massive 9.2 million barrels from the previous week, while gasoline and distillate inventories both decreased from the previous week amid greater levels of refining.
This report also analyzes the repercussions of these developments on the oil market, refining capacity, and the state of the global economy.
Oil Trading News: Crude Inventory Surge
We’ve just seen the Energy Information Administration report unexpected builds in US crude oil inventories, as well as gasoline and distillate inventories.
It seems that as we enter the peak driving season, when gasoline demand usually rises, refineries seem to be boosting runs, and summer travel is increasingly hampered by soft demand.
All of this is the reason you should be listening to all the latest oil trading news.
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On the other hand, U.S. crude oil inventories rose by 1.2 million barrels to hit 455.9 million barrels in the week ending 31 March, according to the US Energy Information Administration’s weekly crude inventory release, slightly more than the 0.9-million-barrel rise analysts from a Reuters poll had expected.
Oil trading news points to this as a surprising build, as it affects price action and could guide the trader in the future.
Oil Trading News: Market Response
Interestingly, futures prices of crude oil reacted in different ways after the data release.
While crude oil futures were edging higher shortly after the data release, WTI crude futures were trading down by 23 cents (0.3%) to $73.02 per barrel and Brent crude futures had slipped 24 cents (0.3%) to $77.27 per barrel, by 11:21 a.m. EDT (1521 GMT).
For those news watchers interested in oil trading, the fluctuations are critical because they indicate how the markets immediately reacted to and anticipate these vital numbers.
Oil Trading News: Refinery Activity
In addition, refinery crude runs rose by 61,000 bpd to 17.1 million bpd, the highest since December 2019, while refinery utilization rose by 1.1 percentage points to 95.4% of total capacity, the highest in a year, and Gulf Coast refinery utilization hit its highest level since June 2023.
Oil Trading News: Gasoline Stocks
The most significant impact on US distillate stockpiles appears to have been the build-up.
In 2019, these stocks increased by 3.2 million barrels to 122.5 million barrels, compared with the prediction that they would rise by 2.5 million barrels.
The higher stocks of diesel and heating oil appear to have been boosted by the demand for such fuels as people turn their air conditioners up or down.
Higher heating costs in the years to come could continue to influence the US distillate market.
Oil Trading News: Imports and Exports
Last week, net US crude imports rose by 13,000 bpd.
Moreover, crude imports from Colombia rose to their highest level since June 2020. Crude exports increased by 276,000 bpd and reached 4.5 million bpd.
When it comes to an oil trading update, changes in the levels of exports and imports play a key role, as they affect global supply chains and ultimately market equilibrium.
Oil Trading News: Cushing Hub
Crude stocks at the Cushing, Oklahoma delivery hub rose by 854,000 barrels.
Its inventory levels at the Cushing hub are widely referenced in oil trading news because of the growth of Cushing as a key market for the transport and storage of crude oil, a major U.S. logistical supply hub.
Oil Trading News: Price Movements
Oil prices edged lower on Wednesday after a positive run this week, on the back of a surprise build in US crude stocks and a bigger-than-expected build in fuel stocks, fueling worries of demand concerns.
Brent crude futures lost 24 cents, or 0.3%, to $77.27 a barrel, while WTI crude futures fell 23 cents, or 0.3%, to $73.02.
Following oil trading news closely can reveal how markets react to different events and the impacts on future price levels.
Oil Trading News: OPEC+ Influence
The contract for Brent crude and the one for WTI both fell for a fifth consecutive session on Tuesday to mark new settlement lows since early February; they reacted to the news over the weekend of plans by OPEC+ to increase supply again in the last quarter of the year despite losing steam in the growth of demand.
What OPEC+ might do has become a pivotal element in news about oil: expectations about what they might do or won’t do, say or stay silent about, has a bearing on the day-to-day making and unmaking of the oil trading settlement.
Oil Trading News: Economic Indicators
Another was related to economic data. U.S. private payrolls, interpreted as a good indicator of the overall US labor market, rose less than economists polled by Reuters had expected in May, and the data for April were revised lower.
Earlier in the day, a slightly downbeat job posting report from the Conference Board further suggested that the Federal Reserve’s battle to rein in inflation was gaining traction, cementing the case for rate cuts.
Economic indicators are not simply about measuring their value as news for oil.
They also influence market sentiment, strengthening or depressing bargaining power and thereby market confidence.
Oil Trading News: Strategic Petroleum Reserve
In the same speech, the energy secretary Jennifer Granholm said: ‘The United States can and should significantly increase the amount with which we refill our Strategic Petroleum Reserve.’
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The rise of ESG reporting adds yet another dimension to the story surrounding movements in oil futures: news of government actions regarding supply that might impact the stability of the market.
Oil Trading News: Global Developments
International news developments also regularly make headlines in oil trading. Saudi Arabia’s participation in a China-centric central bank digital currency trial – originally named Project mBridge, but reportedly now known as DC/EP – will likely shift at least some polycrude trade out of the US dollar.
A full 20% of Saudi Arabia’s oil is currently sold to China.
Such geopolitical and financial innovations – especially when accompanied by the prospect of a wresting away of global economic power – have the capacity to generate much greater headlines than price or volume news that might otherwise be covered extensively.
Oil Trading News: Renewable Energy Push
Azerbaijan, in particular, has increased the share of renewables in the energy mix as well – the government earmarked $2 billion for green investments and wants to boost renewable energy capacity to 33% of overall energy capacity by 2027.
Efforts like these, whether they make headlines in oil trading news or not, with their green agendas and continued commitments to fossil fuel investments, are keeping demand both modern and backward-looking at the same time.
Oil Trading News: Suriname’s Oil Project
TotalEnergies and APA Corp’s coming fourth-quarter investment decision on Suriname’s offshore oil project is one of several oil trading news that cannot be ignored.
Commercial offshore development – perhaps Suriname’s first – will bring in more hydrocarbon for developing countries.
Conclusion
The most recent movements on US crude stockpiles, refinery activities, and global macro news are providing the most holistic market picture of oil trading news to date.
Analyzing these changes through all the lenses of oil trading news can lead to a better projection for traders, analysts, and stakeholders of the market.
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