Crude oil futures prices posted narrow gains after U.S. weekly oil inventory data showed a big, unexpected drop in inventories. But traders said price support in response to the 3.9-million-barrel drop in crude oil stockpiles was capped by significant gains in inventories of distillate fuel (diesel/heating oil) and gasoline.
The Energy Information Administration reported the drop in crude stocks for the week ended Jan. 22, contrary to analysts’ expectations for a rise of around 900,000 barrels.
Gasoline stocks gained 2 million barrels, compared with a forecasted gain of 600,000 barrels, while distillate stocks rose 400,000 barrels, when a decline of 1.6 million barrels was expected. Refiners, as expected, showed little appetite for crude amid weak demand, poor margins and seasonal maintenance.
Refiners lifted operations relative to capacity by 0.1 percentage point, but crude runs of 13.6 million barrels a day were the lowest since September 2008, when storms disrupted U.S. Gulf facilities and were the lowest for this week since 1997.
Chinese lending and euro zone debt concerns is sending copper futures lower as equities also decline and the U.S. dollar gains. Fund buying has slowed as they are being highly discouraged by the government
There was profit-taking in gold as traders were selling to exit from positions in which they previously bought. This squaring was occurring before the FOMC statement and State of the Union address yet today.
