NYMEX Oil Futures Mixed after Data, Products Pare Gains

    

   CRANBURY, N.J. (DTN) -- Nearest delivered New York Mercantile Exchange oil 
futures remained mixed following the late morning release of holiday-delayed 
inventory data from the Energy Information Administration, which showed a fifth 
consecutive weekly build in U.S. commercial crude inventory while gasoline and 
distillate stocks were both drawn down.

   A 3.7 million bbl increase in commercial crude stocks during the week-ended 
Feb. 15 lifted inventory to a better 15-month high at 454.8 million bbl, and 
widened a year-on-year surplus by 5.3 million bbl to 34.0 million bbl or 8.1%. 
A 3.4 million bbl build at Cushing, the delivery location for the NYMEX West 
Texas Intermediate futures contract, accounted for most of the weekly increase.

   Crude supply is increasing as refiners shut units for seasonal maintenance, 
with the U.S. run rate flat for the week profiled at an 85.9% 16-month low.

   Building crude stocks also come as domestic production increases. U.S. crude 
production increased 100,000 bpd to 12.0 million bpd during the week-ended Feb. 
15, a fresh record high, although EIA's monthly data determined the 12.0 
million bpd production rate was reached in January. In its Short-term Energy 
Outlook released earlier this month, EIA projected U.S. crude output would 
average 12.4 million bpd this year for a 400,000 bpd year-on-year growth rate.

   U.S. crude exports reached a record high at 3.607 million bpd during the 
week profiled, with exports averaging 2.55 million bpd so far in 2019.

   A 1.5 million bbl draw in gasoline during the week profiled was 
more-than-expected, with gasoline supply still elevated at 256.8 million bbl. 
Gasoline supply continues to narrow a year-on-year deficit, which declined by 
1.7 million bbl to 7.5 million bbl or 3.0%.

   Distillate stocks were drawn down 1.5 million bbl to 138.7 million bbl, a 
seven-week low. Total commercial crude and products inventory declined 2.5 
million bbl to 1.263 billion bbl, although are 62.4 million bbl above the 
five-year average.

   Implied demand for both gasoline and distillates increased on the week, up 
153,000 bpd to 8.8 million bpd and up 448,000 bpd to 4.216 million bpd, 
respectively. During the four weeks ended Feb. 15, implied gasoline demand is 
down 33,000 bpd or 0.4% against year ago at 9.021 million bpd.

   At last look, NYMEX WTI April futures were down $0.39 at $56.77 bbl, with 
the ICE Brent April contract down $0.27 at $66.81. NYMEX RBOB March futures 
were up $0.0035 at $1.6016 gallon and ULSD March futures were up $0.0017 at 
$2.020 gallon.

   Brian L. Milne, 1.609.371.3328, brian.milne@dtn.com, www.dtn.com. (c) 2019 
DTN. All rights reserved.