Oil Slips as USD Rockets to 5mos. High on Inflation Report
4/11 6:58 AM
Oil Slips as USD Rockets to 5mos. High on Inflation Report VIENNA (DTN) -- West Texas Intermediate futures closest to expiration on the New York Mercantile Exchange and Brent crude on the Intercontinental Exchange moved lower Thursday morning, pressured by a sharply stronger U.S. dollar index that jumped Wednesday from 103.8 to 105.03 at the close in response to the monthly release of the consumer price index from the Bureau of Labor Statistics showing inflation in March running hotter than expected. Wednesday's weekly inventory report from the Energy Information Administration also added to bearish sentiment. U.S. commercial crude oil inventories added 5.841 million bbl in the week ending April 5, and distillate fuel oil stocks counter-seasonally built 1.659 million bbl. The agency also reported a surprise build to domestic gasoline stocks, which grew 715,000 bbl in the reviewed week. Next, markets await this morning's release of OPEC's Monthly Oil Market Report for clues on global fuel demand developments, particularly given the growing gap between different agencies' estimates. In its latest Short-term Energy Outlook released Tuesday, the EIA again revised higher its global demand expectations. The EIA expects global oil demand to average 102.91 million bpd this year and 104.26 million bpd in 2025, both figures some 500,000 bpd higher than in last month's STEO. Underlining this revision, however, is not a more bullish outlook on demand growth but a large upward adjustment to historical demand data. A close to 1 million bpd upward revision to its 2023 global consumption estimate effectively lowered the agency's annual demand growth expectation for 2024 from 1.43 million bpd to 950,000 bpd. Near 7:45 AM ET, WTI futures for May delivery were down $0.52 bbl to trade near $85.69 bbl, and Brent for June delivery fell $0.48 bbl to $90.00 bbl. RBOB for May delivery slipped $0.0015 to $2.7831 gallon, while ULSD for May delivery traded near $2.6786 gallon, down $0.0290. Karim Bastati, karim.bastati@dtn.com, www.dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.
 
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