Oil futures: Crude steadies after US stock draw, offset by weaker gasoil
Quantum Commodity Intelligence – Crude oil futures Wednesday were marginally higher after data showed a steep draw in US crude inventories, while Hurricane Idalia sent a timely reminder of the threat posed to the energy sector during the peak storm season.
Nov23 ICE Brent futures were trading at $85.25/b (2025 GMT), compared to Tuesday's settle of $84.91/b, while Oct23 was $85.95/b heading into the expiry.
At the same time Oct23 NYMEX WTI was trading $81.68/b versus Tuesday's settle of $81.16/b.
Weekly figures from the US Energy Department's Energy Information Administration (EIA) published Wednesday revealed commercial stocks of crude oil fell by 10.6 million barrels last week, which was largely backed up by API data published late Tuesday showing inventories falling by 11.5 million barrels last week.
However, the crude draw was in part neutralised by a 1.4 million bpd build in gasoline inventories, according to the API, while distillate stocks increased 2.4 million bpd, which in turn sent distillate prices tumbling.
Prices also found support Wednesday after armed forces said they have taken control of oil-producer Gabon, raising questions over stability of supply from one of OPEC's smaller members.
According to the most recent figures, Gabon produced 211,000 bpd of crude oil in July and accounted for around 0.8% of OPEC's total output last month. While small in absolute terms, output disruptions can have an outsized impact on oil price volatility in a finely balanced supply situation.
Hurricane
Major offshore and onshore energy facilities have largely dodged Hurricane Idalia, which made landfall Wednesday along Florida's Big Bend as a major Category 3 storm.
Chevron had evacuated some staff from offshore rigs Tuesday as a precaution but output was not impacted.
Idalia's path took the storm away from the nearest onshore energy hub in southeast Louisiana, which was devasted two years ago by Hurricane Ida, including an extended shutdown of the Port Fourchon logistics hub.
Damage to the energy infrastructure is likely to be localised, with power lines and oil distribution centres in the path of Idalia under threat, which is likely to lead to a temporary drop in energy demand, including natural gas.
Meanwhile, US data revealed job openings dropped to their lowest level in two years last month in a further sign the labour market is cooling, which could lead the Federal Reserve to pause its interest rate increases again next month.
US Consumer Confidence also took a hit, down to 106.1 points from a downward revised 114 and missing forecasts of 116.
