WTI Crude oil stayed weak and lingered around its three week low after the US Energy Information Administration (EIA) reported a build of 2.3 million barrels for the week to January 13, to a total of 485.5 million barrels. This came on top of last week’s increase of 4.1 million barrels in commercial crude oil inventories. Weak US equities also weighed on oil. MCX Crude oil futures closed just under Rs 3500 per barrel, dropping from highs around Rs 3440 per barrel.
According to the EIA, in the week to January 13 refineries processed 16.5 million barrels of crude daily, down by 639,000 bpd on the week, producing 9 million barrels per day of gasoline, down on the previous week’s 9.7 million barrels daily. Inventories of the fuel rose by 6 million barrels in the period, compared with a 5-million-barrel increase in the week to January 6. Yesterday, the API estimated that gasoline inventories had jumped by a hefty 9.75 million barrels.
Imports of crude oil for the week to January 13 stood at 8.4 million barrels daily, a palpable decline on the previous week’s 9.1 million bpd. Earlier this week, in its Drilling Productivity Report, the EIA estimated that domestic output from the shale patch would be 41,000 bpd higher in February than in January, thanks mostly to a substantial production rise in the Permian, which will offset declines in other shale plays.
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