Headlines
-
Higher U.S. inventories weight on crude
-
Gold steady, bleak IMF forecast may push it up
-
Base metal prices without any trend
Brent and Distillates
On Wednesday crude prices fell, after another jump in U.S crude stocks, underlined by poor economic prospects after the International Monetary Fund forecasts the global economy would shrink 1.3% this year. As for commodities the IMF expects commodity prices are likely to remain “subdued” as long as economic activity continues to slow.
U.S. crude stocks have already risen to their highest levels in almost 19 years and yesterday’s data showed a further increase of 3.9 mln.b, well above the consensus forecast for a rise of 2.6mln.b. Refinery utilisation rose 3 % to 83.4 %, contributing to unexpected increases for both petrol and heating oil stocks. Gasoline stocks rose 800 kb, against the consensus forecast for a drop of 400 kb. Distillate inventories increased 2.7mln.b, also confounding the consensus forecast for a fall of 700 kb.
China's implied oil demand in March dipped 0.3% y/y, but stood at the highest rate since last September, Reuters calculations from official data showed. On the contrary implied demand, i.e. net imports plus refinery output,- was at 7.31 mln.b/d, 1.2 % m/m.
Japan's crude oil inventories hit their highest in nearly two months last week, while refinery utilisation edged up from a six-month low, industry data showed yesterday. Gasoline stocks extended declines as sales rose 4.2 % from the week before to 1 mln.b/d, Reuters calculations based on the weekly data by the Petroleum Association of Japan showed.
Oil companies are storing close to 100 mln.b of crude oil at sea, the highest in recent times, Frontline, one of the world's biggest independent oil tanker owners said on Wednesday. An oil market structure known as contango -- when oil for prompt delivery is cheaper than oil for later delivery -- has encouraged high levels of oil storage by trading firms for some months. Contango provides an incentive for traders to buy now and sell later.
