Benchmarks Decline After Stockpile Data

Crude oil futures ticked lower during Asia trade on Thursday, WTI futures last down $0.22 at $53.09, brent down $0.19 at $55.89, on track for the first daily decline so far this week.

• The decline came as API data showed an unexpected build in US crude inventories. Data showed a 2.56m bbl build in US crude inventories in the latest survey period, the increase in stocks was contrary to predictions by analysts who expected a 2.5m bbl draw. The data also showed builds in stockpiles in downstream product; US gasoline and distillate inventories rose by 1.13m bbls and 816k bbls, respectively. The market will now be looking towards more comprehensive inventory data from the DOE which will be released Jan. 22.
• The decline in crude prices was tempered by expectations that Biden, now inaugurated as US President, will place a greater emphasis in pushing through fiscal stimulus, and in tackling the pandemic situation including faster vaccine roll outs.