Oil Rebouns from 3-Month Lows on U.S. Inventory Watch


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Crude futures rose from three-month lows on Wednesday 
(6/17) morning as traders weighed the potential outcome of a U.S.-Iran peace 
deal on supply.

   Anticipation that the U.S. Energy Information Administration could report 
another substantial weekly crude draw in inventory numbers due at 10:30 a.m. 
also fueled the upward momentum.  The American Petroleum Institute, in a 
separate report issued Tuesday (6/16), cited an 8.3 million bbl drop in crude 
stocks for the week ended June 12.

   The trade's attention is also on a Federal Reserve interest rate decision 
due at 2:00 p.m. ET, where the central bank is expected to leave rates 
unchanged in a 3.5-3.75% range.

   By 9:35 a.m. ET, NYMEX WTI for July delivery was up $0.94, or 1.2%, to 
$76.99 bbl after tumbling 5.4% in the previous session to $76.39 bbl, its 
lowest close since March 10.

   ICE Brent for August delivery rose $1.08 to $80.04 bbl, recovering from a 
prior drop of 4.7% to $79.25 bbl, its lowest value since March 6.

   Downstream, NYMEX ULSD futures for July climbed $0.0598 to $3.2300 gallon, 
while NYMEX RBOB for July advanced 0.0054 to $2.8859 gallon.

   The US dollar index was little changed, up 0.091 points to 99.37 against a 
basket of foreign currencies.

   Energy markets fell broadly over the two past two sessions on expectations 
that a memorandum of understanding to be signed between Iran and the U.S. on 
Friday would reinforce another 60 days of ceasefire in the Middle East 
conflict, paving the way for a gradual resumption of maritime traffic through 
the Strait of Hormuz chokepoint, largely impassable over the past 3-1/2  months 
to some 20 million bpd of petroleum liquids.

    




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