- Crude oil futures were lower in mid-morning trade in Asia Jan. 20.
- Oil prices have climbed spectacularly since the start of the year.
- US crude oil stocks, meanwhile, reportedly rose 1.4 million barrels in the week ended Jan. 14.
Crude oil futures were lower in mid-morning trade in Asia Jan. 20…, says an article published on sp global website.
Crude oil futures lower in mid-morning trade
Crude oil futures were lower in mid-morning trade in Asia Jan. 20, tracking the bearish mood in the broader financial markets, as investors took the chance to book profits after oil flow resumed on the Kirkuk-Ceyhan pipeline and US crude oil stocks reportedly rose last week.
At 10:25 am Singapore time (0225 GMT), the ICE March Brent futures contract was down 55 cents/b (0.61%) from the previous close at $87.89/b, while the NYMEX February light sweet crude contract fell 46 cents/b (0.51) at $86.50/b.
“WTI is trading weaker in early morning trading today in Asia. It shouldn’t be too surprising to see the market taking a breather after the scale of the move we have seen so far this year,” ING analysts Warren Patterson and Wenyu Yao said in a Jan. 20 note.
Oil prices rose since the start of the year
Oil prices have climbed spectacularly since the start of the year, with both front month crude benchmarks tacking on up to 16% in value over the period. With the broader Asian equity markets mostly moving lower Jan. 20 following a bearish overnight Wall Street session, investors were likely taking the chance to close out long positions.
Oil flow along the Kirkuk-Ceyhan pipeline resumed as of 11:00 local time (0800 GMT) Jan. 19, after Turkey’s state pipeline operator Botas completed repairs on the damaged pipeline following an earlier explosion near Kahramanmaras in southern Turkey, the company said in a statement.
US crude oil stocks, meanwhile, reportedly rose 1.4 million barrels in the week ended Jan. 14, according to the American Petroleum Institute, media reports indicated. Gasoline inventories rose 3.46 million barrels, while distillate stocks fell 1.18 million barrels.
“[Brent’s] rally is showing signs of slowing after it closed lower than its opening price. Beyond the very short term, we remain bullish on the crude oil complex,” OCBC Treasury Research analysts said in a note.
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Source: sp global
