0128 GMT: Crude oil futures were rangebound in mid-morning trade in Asia Sept. 11 after the US Energy Information Administration reported an unexpected build in US commercial crude inventories after six weeks of declines and the coronavirus pandemic continued to cloud the global macroeconomic outlook.
At 09:28 am Singapore time (0128 GMT), ICE Brent November crude futures were down 9 cents/b (0.22%) from the Sept. 10 settle at $39.97/b, while the NYMEX October light sweet crude contract was 1 cent/b (0.03%) lower at $37.29/b.
"US and global crude oil prices fell on Thursday [Sept. 10] after US government data showed US domestic crude inventory increased for the first time since mid-July amidst wavering gasoline demand, with inventories at Cushing, Oklahoma rising to the highest since May and US crude production increased slightly," UOB analysts said in a note Sept. 11.
US commercial crude inventories rose 2.03 million barrels to 500.43 million barrels in the week ended Sept. 4, roughly 14% above the five-year average, EIA data released Sept. 10 showed. Notably, it was the first build after six consecutive weeks of drawdown in US crude stocks.
Total US gasoline stocks fell 2.95 million barrels to 231.91 million barrels over the same period, while distillate stocks slipped 1.68 million barrels to 175.85 million barrels, as the lingering impact of Hurricane Laura continued to curtail refinery runs.
However, refined product demand also remained weak, with US gasoline demand slipping 400,000 b/d to 8.39 million b/d in the week ended Sept. 4, the lowest since the week ended July 12.
The continued spread of COVID-19 worldwide remains the key drag on the energy demand outlook. Global COVID-19 infections currently exceed 28 million cases, with 907,377 deaths, latest data from John Hopkins University showed.
"The correction in oil was overdue in my view given a slowing demand recovery and rising supply in the near term. Still, medium and longer-term fundamentals suggest limited downside for oil from here," Stephen Innes, chief global markets strategist at AxiCorp, said in a note Sept. 11.
"Any dips will likely be sentiment-linked and short-lived, with a tightening market driving a gradual recovery through $45/b into year end," he added.
At 09:28 am Singapore time (0128 GMT), the NYMEX October RBOB stood at $1.0955, down 0.2% from the previous settle, while October ULSD stood at $1.0804/gal, down 0.18% from its previous close.
