Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UPDATE 7-Oil falls on hike in U.S. crude stockpiles, trade deal concerns

Published 2019-10-30, 05:01 p/m
Updated 2019-10-30, 05:01 p/m
© Reuters.  UPDATE 7-Oil falls on hike in U.S. crude stockpiles, trade deal concerns

© Reuters. UPDATE 7-Oil falls on hike in U.S. crude stockpiles, trade deal concerns

* U.S. crude stocks drop 5.7 mln bbls as imports rise -EIA

* Investors concerned about hitch in trade talks

* TC Energy reports spill in North Dakota, shuts Keystone pipeline

* U.S. Fed lowers interest rates, signals it is on hold

* Graphic on U.S. inventories: https://tmsnrt.rs/2XkQF8e (Adds settlement prices)

By Jessica Resnick-Ault

NEW YORK, Oct 30 (Reuters) - Oil prices fell on Wednesday after a steep U.S. crude inventory build added to worries about a possible delay in resolving the U.S.-China trade war, which has hurt global oil demand.

Late in the session, U.S. crude futures found some support after TC Energy Corp TRP.TO said it was shutting its Keystone crude pipeline due to a spill in North Dakota. The company did not say how long the major conduit, which carries 590,000 barrels per day (bpd) of crude from Canada to refineries in the U.S. Midwest, would be out of service. West Texas Intermediate (WTI) crude futures CLc1 settled at $55.06 a barrel, down 48 cents, or 0.9%. Brent crude futures LCOc1 fell 98 cents, or 1.6% to end at $60.61.

U.S. crude oil stockpiles soared last week amid higher imports and a release from national reserves, while gasoline and distillate inventories extended their declines even as refiners ramped up production, the Energy Information Administration said. EIA/S

Crude inventories, excluding the Strategic Petroleum Reserve (SPR), rose 5.7 million barrels, the EIA said, compared with analysts' expectations for a 494,000-barrel build and a 708,000-barrel decline reported by industry group the American Petroleum Institute late Tuesday.

"A strong rebound in Canadian imports and another SPR release has encouraged a build to crude inventories," said Matt Smith, director of commodity research at Clipper Data. "Tempering the bearish influence of the solid crude build are draws to both distillates and gasoline amid a tick higher in implied demand."

Crude stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures rose for a fourth straight week, gaining 1.6 million barrels last week, EIA data showed, dragging on futures prices for the benchmark.

"Stocks at the WTI delivery hub have been trending higher since late September, which has put pressure on the prompt WTI time spreads, with the December/January spread this month having shifted from backwardation to contango," Dutch bank ING said in a note.

The United States and China were continuing to work on an interim trade agreement, but it may not be completed in time for U.S. and Chinese leaders to sign it next month, a U.S. administration official said. came courtesy of the fading optimism over trade and a Fed rate cut. Risk assets were dealt a blow as market players worried that the U.S. and China would delay settling their trade differences," said PVM analyst Stephen Brennock.

The Federal Reserve on Wednesday cut interest rates for the third time this year to help sustain U.S. growth despite a slowdown in other parts of the world, but signaled no further reductions ahead unless the economy takes a turn for the worse. rate cut would help to support oil prices because a stronger economy typically implies higher demand for crude, while falling inventories suggest the market is coming into balance.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ CHART: U.S. oil may seek support at $55.05

CHART: Brent oil may rise to $62.58

U.S. crude inventories, weekly changes since 2017 png

https://tmsnrt.rs/2XlX17b

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Marguerita Choy and David Goodman)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.