MOSCOW (MRC) -- Crude oil futures were largely steady in mid-morning trade in Asia Nov. 25 as risk sentiment remained firm despite a build in US crude oil stocks in data released overnight, reported S&P Global.
At 10:25 am Singapore time (0225 GMT), the ICE January Brent futures contract was up 4 cents/b (0.05%) from the previous close at USD82.29/b, while the NYMEX January light sweet crude contract was 3 cents/b (0.04%) lower at USD78.36/b.
Total US commercial crude stocks rose 1.02 million barrels to 434.02 million barrels in the week to Nov. 19, the US Energy Information Administration said Nov. 24, leaving stockpiles around 7.2% behind the five-year average for this time of year.
US gasoline stocks fell 600,000 barrels to 211.39 million barrels, falling 5.2% behind the five-year average, while total distillate stocks fell 1.97 million barrels to 121.72 million barrels, the EIA data showed.
Demand was seen higher in the US across all major refined products, with both gasoline and distillate consumption rising around 1% on the week to 9.33 million b/d and 4.39 million b/d, respectively.
Investors will likely remain bullish on crude oil in the near term after announcements of strategic petroleum reserve releases by major oil-consuming countries fell far short of expectations, sending oil prices shooting higher by more than 3%. Colder weather in several parts of Asia will also keep a floor under energy prices, analysts said.
As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.
We remind that in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.
We also remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, EIA said in a monthly report earlier this year, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC