Oil futures slipped midday Wednesday as new Energy Information Administration data showed record U.S. crude production outweighed a decline in commercial inventories.
As of 12:30 p.m. ET, the NYMEX January West Texas Intermediate contract was trading 13cts lower at $58.13/bbl, while the February WTI contract was down 13cts at $57.95/bbl.
The ICE February Brent contract was 13cts lower at $61.81/bbl, and the March Brent contract was down 15cts at $61.50/bbl.
U.S. commercial crude inventories fell by 1.8 million bbl to 4% below the five-year average. Crude prices were pressured despite the drawdown in inventories as U.S. production hit a record 13.85 million b/d last week, according to EIA. The agency also rebenchmarked its production estimates upward by 52,000 b/d based on data collected for its Short-Term Energy Outlook, adding to the perception of ample supply.
The Nymex January ULSD contract was up 1.5cts at $2.2751/gal, and February ULSD gained 1.49cts to $2.2600/gal, supported by strong seasonal demand. Diesel stocks grew by 2.5 million bbl but remain 7% below the five-year average. Distillate demand rose 728,000 b/d from last week and is 707,000 b/d higher than a year ago.
The January RBOB contract traded 1.25cts lower at $1.7772/gal, while February futures were down 1.18cts at $1.7808/gal. Gasoline futures fell as inventories rose by 6.4 million bbl, even though stocks are still slightly below the five-year average. Demand edged higher, but overall consumption is below last year's level, putting downward pressure on prices.
Markets are awaiting the Federal Reserve's interest rate decision later Wednesday, and traders continue to monitor Ukraine peace talks.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
Reporting by Allegra Fradkin, afradkin@oppisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
12-10-25 1308ET
