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yesterday

Oil Prices Hold Near Mid-$60s After Fed Cut as Mixed Supply Signals Keep Range Intact

Prices reflect a sharp U.S. crude draw versus higher distillate stocks, with expanding OPEC+ supply pressuring sentiment.

An aerial view shows tugboats helping a crude oil tanker to berth at an oil terminal, off Waidiao Island in Zhoushan, Zhejiang province, China July 18, 2022. cnsphoto via REUTERS/File Photo
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Overview

  • Brent hovered near $67.9 and WTI near $64 after the Federal Reserve cut rates by 25 basis points and signaled the possibility of further easing.
  • U.S. commercial crude inventories fell by 9.3 million barrels in the week to September 12, with Reuters noting record-low net imports and stronger exports.
  • Distillate inventories rose by about 4 million barrels and gasoline stocks declined, reinforcing a mixed demand picture despite the crude draw.
  • Ukrainian strikes on Russian refineries, including recent hits on Kirishi and Saratov, have curbed Russian processing and stoked near-term supply risk.
  • Traders continue to price a tight $5 band for crude as OPEC+ output increases, an SPR build of 500,000 barrels, and earlier dollar weakness pull the market in opposing directions.