The petroleum complex settled down Wednesday, as poor economic data and a bearish US Energy Information Administration oil inventory report weighed on futures prices.
NYMEX June crude settled down 94 cents to $105.22/barrel, as the EIA reported US crude stocks climbed 2.84 million barrels to 375.864 million barrels the week ending April 27. The build came as both production and imports increased, and despite higher refinery inputs, according to EIA data.
Nearly half of the build occurred at the NYMEX crude contract delivery point of Cushing, Oklahoma. Cushing stocks rose by 1.213 million barrels to 42.964 million barrels, their highest level since the EIA began reporting on Cushing inventories in April 2004.
Stock increases were seen across the country, apart from the Atlantic Coast, where stocks were down 278,000 barrels. US Gulf Coast stocks climbed 1.556 million barrels to 184.905 million barrels.
Cushing crude stocks have been climbing steadily for more than three months, from 28.273 million barrels in mid-January. Cushing stocks were 40.44% above the five-year average at the week ending April 27, and up from a 0.26% deficit in mid-January, according to EIA.
Analysts have attributed the Cushing stock builds to preparation ahead of the Seaway Pipeline reversal, which will bring crude from Cushing to the Gulf Coast. The reversal is on target for mid-May, Enterprise Products Partners said Wednesday.
US stocks climbed despite a 230,000 b/d rise in crude inputs into refineries, to 14.707 million b/d.
"We have a 20-year high in total crude oil stocks, and record high in Cushing stocks, in combination with disappointing economic data today," Gene McGillian of Tradition Energy said. "I still don't see signs that fuel demand is increasing. Even with easy money policies coming out of the world's central banks putting confidence in markets, the near fundamentals don't support strongly rising oil prices at the moment."
Employment data released by American Data Processing Wednesday showed a disappointing 119,000 unit increase in non-farm payrolls, which was below the consensus forecast of 177,000.
ICE June Brent futures fell $1.46 to settle at $118.20/b, as a stronger dollar put pressure on the euro throughout the trading day, with a barrage of disappointing economic data coming out of Europe also a factor.
According to Matt Smith of Summit Energy Services, the larger impact on Brent came from bearish economic data, with the key Manufacturing Purchasing Managers' Index hitting a three-year low, and a rise in European unemployment to 10.9%, a 15-year high.
NYMEX June RBOB fell 2.14 cents to settle at $3.0757/gal. EIA data showed total US gasoline stocks declined by just over 2 million barrels to 209.721 million barrels last week, with declines seen across all US regions except for the US Gulf Coast.
US gasoline stocks have declined by 22.455 million barrels since the week ending February 10.
NYMEX June heating oil futures settled down 3.46 cents to $3.1426/gal, as total US distillate stocks fell 1.903 million barrels last week to 124.022 million barrels.
The decline was led by a 2.053-million-barrel draw in the Gulf Coast, and a 1.64-million-barrel decline on the Atlantic Coast.
Low and ultra low sulfur diesel stocks in the US fell 1.475 million barrels to 97.495 million barrels.
