Crude Prices Stay Rangebound Despite Stockbuild

Crude oil prices continued rangebound last week despite the release of weekly data by the US Energy Information Administration (EIA) showing that inventories had increased by 2.8mn barrels. Despite supplies growing in the US, the upward spiral for domestic product prices is impacting private and business consumers. A decline in the value of the dollar against the euro also helped support prices. Concern continues in the market over the future course of the Iranian nuclear standoff and China’s economic strength as the global economy falters.

In its latest Oil Market Report , released on 12 April, the Paris-based International Energy Agency (EIA) said that global oil demand is expected to rise to 89.9mn b/d in 2012, a gain of 800,000 b/d on 2011. It forecast that consumption would in the second quarter of this year average 88.6mn b/d, as weak seasonal products demand combines with high prices and a stuttering economic recovery. It said that demand would strengthen through the end of 2012 as economic growth accelerates.

In its Weekly Petroleum Status Report , released on 11 April, the EIA said US commercial crude oil inventories increased by 2.8mn barrels during the week ending 6 April. At 365.2mn barrels, US crude oil inventories are at the upper limit of the average range for this time of year. Total motor gasoline inventories decreased by 4.3mn barrels and are at the upper limit of the average range. Distillate fuel inventories decreased by 4.0mn barrels and are in the middle of the average range for this time of year. Total commercial petroleum inventories decreased by 3.9mn barrels.

US crude oil imports averaged 8.5mn b/d, down by 1.3mn b/d from the previous week. Over the last four weeks, crude oil imports have averaged 8.9mn b/d, 38,000 b/d above the same four-week period last year. US crude oil refinery inputs averaged just under 14.4mn b/d during the week, 395,000 b/d below the previous week’s average. Total products supplied over the last four-week period have averaged about 18.3mn b/d, down by 4.3% compared to the similar period last year.

Settlement Prices For Benchmark Crudes ($/B)

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