Crude Markets Rise After Larger Than Expected Draw on Crude Stockpiles

by Nick Bond, KPI Bridge Oil
Wednesday July 17, 2013

A larger than anticipated draw on crude stockpiles and concerns about supply disruptions helped support today's rise in the crude markets. 

WTI found support as the EIA's weekly Inventory Report showed a drop of 6.9 million barrels in crude supplies last week. 

Analysts were expecting a smaller draw of only 2.5 million barrels, but higher-than-expected refinery operations facilitated the drop in crude and increase in gasoline and distillate supplies.

Brent received some upward push today as protesters stormed the eastern Libyan port of Zueitina demanding that operations be halted.

The news caused many investors to become concerned about interruptions of supplies in the region.

Bernanke's testimony to congress had relatively little effect on the market today, as his comments remained the same; stimulus efforts are not on a preset course and could be reduced or expanded, depending on economic conditions. 

Many still feel that the central bank may begin to reduce its bond purchasing program towards the end of this year. 

WTI moved up $0.48 to settle at $106.48/bbl and Brent rose $0.47 to $108.61/bbl. Bunker prices were stable to firm in the primary ports.

About KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favourable terms.

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