Article by ForexTime

Crude oil prices dipped on Wednesday following a report from the Department of Energy that showed an overall draw in commercial petroleum stocks.  Demand for distillates remains strong, but the recent run up in prices was enough to incent traders to take profits following the robust inventory report.  Jobs data released on Wednesday was also in line with expectations, and will build toward expectations of the governments jobs report scheduled to be released on Friday.

The U.S. ADP reported private payrolls increased 182k in October after a downwardly revised 190k in September. Jobs in the goods producing sector rose 24k, and were up 158k in the services sector. Employment in construction increased 35k, but manufacturing payrolls fell 2k. The financial industry added 9k. Professional and business services rose 13k. And trade, transportation, and utilities increased 35k.

According to the Department of energy U.S. crude oil imports averaged over 6.9 million barrels per day last week, down by 89,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged 7.2 million barrels per day, 0.8% below the same four-week period last year. Production is not being replaced by imports.

U.S. commercial crude oil inventories increased by 2.8 million barrels from the previous week. Gasoline inventories decreased by 3.3 million barrels last week, but are above the upper limit of the average range. Distillate fuel inventories decreased by 1.3 million barrels last week but are in the middle of the average range for this time of year.

On the demand front, over the last four weeks, gasoline demand averaged 9.2 million barrels per day, up by 2.5% from the same period last year. Distillate fuel demand averaged over 3.9 million barrels per day over the last four weeks, up by 8.9% from the same period last year. Jet fuel demand is up 2.8% compared to the same four-week period last year.

Article by ForexTime

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