WTI closed higher for the first time in five sessions yesterday
The front month West Texas Intermediate contract is up $1.25 from yesterday’s close of $47.98 per barrel. The 2.3% increase in WTI front month contracts marked the first time in five sessions that the price of the U.S. crude benchmark finished the day strong than when it started.
The Department of Energy (DOE) reported crude inventories of 459,682 MBOE, a decline of 4,203 MBOE from last week. Crude oil inventories were climbing after eight weeks of declines, putting more pressure on WTI prices. Cushing inventories decreased by 212 MBOE from last week, while distillate inventories increased by 2,588 MBOE in the same time period.
U.S. stocks also saw the end to a five-day losing streak Tuesday, with the S&P 500 gaining 1.2%, while the blue-chip Dow and Nasdaq Composite closed up 1.1% and 1%, respectively. WTI closed today up again at $48.82, continuing yesterday’s gains.
International benchmark fairing worse
While WTI saw its first gains in several days, Brent crude oil continued to feel downward pressure from international events. Concerns over further declines in the Chinese stock market and more crude oil coming out of Iran continue to weigh heavy on the international crude oil benchmark.
China’s stock market saw a rebound today, with the country taking the lead in a broader recovery in Asian markets, reports CNBC. The Shanghai Composite index gained 3.5% Wednesday, breaking a three-day losing streak. China’s blue-chip stocks showed mix results even as the broader index gained, however. PetroChina (ticker: PTR) closed down 1.7%, while Bank of China shed 0.6% and China Vanke lost 0.1%. China’s Poly Real Estate gained 3%.
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.