WTI Surges as U.S. Crude Stockpiles Plummet 7.66 Million Barrels

by Tim Bonett, KPI Bridge Oil
Wednesday January 15, 2014

Multiple data indicators shot WTI skyward today. This morning's EIA report showed that U.S. crude stockpiles fell by 7.66 million barrels, significantly more than anticipated, to the lowest inventory level since March of 2012.

A major contributor to this decline was a 13% drop in crude imports, the largest monthly decline in over 15 months.

However, refineries reported a 2.3 percentage point drop in utilization rates from a December peak of 92.7 which kept inventory levels from falling even further.

Also supporting both crude benchmarks today was a report from the U.S. based World Bank which expects global economy to expand by 3.2% in 2014, a slightly higher figure than expected 6 months ago.

WTI jumped $1.58 by the end of the session, settling at $94.17 while Brent rose $0.74 finishing at $107.13. Bunker prices were 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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