Oil Futures RallIEDy, WTI jumps over $80


   
Maria Eugenia Garcia
DTN Energy Editor

   HOUSTON, TX (DTN) -- Oil futures settled higher on Wednesday with over $2 
gains reaching multi-month hikes, driven by inflation data, the announcement of 
a Hamas-Israel ceasefire, and concerns of limited supply as crude inventories 
continued declining last week, coupled with Colonial Pipeline issues.

   The Energy Information Administration data showed commercial crude oil 
inventories in the U.S. fell by 2 million bbl to 412.7 million bbl in the week 
ended Jan. 10, despite a drop in refining utilization in the same period.  

   Crude oil refinery inputs were at 16.6 million bpd, 255,000 bpd lower than 
the previous week's average.

   But the EIA data on commercial crude oil inventories were lower than the 2.6 
million bbl drop American Petroleum Institute data showed yesterday (1/15) for 
the same week.

   According to EIA, gasoline stocks rose 5.9 million bbl week-over-week to 
reach 243.6 million bbl, while distillate fuel stocks rose 3.1 million bbl to 
132 million bbl last week.

   Oil futures markets were also bullish due to expectations of firm buying 
interest predicted by Opec's Monthly Oil Market Report released today.

   "The global oil demand growth forecast for 2025 remains unchanged at 1.4 
million bpd. The OECD is forecast to grow by about 0.1 million bpd, while the 
non-OECD is forecast to grow by about 1.3 million bpd. This robust oil demand 
growth is expected to continue in 2026," the report said.

   Separately, U.S. Bureau of Labor Statistics data showed the U.S. consumer 
price index rose 0.2% in December, which brought the annualized rate of 
inflation for the all-item index to 2.9%. The CPI index for December was above 
the market expectation of 0.3%.

   News that Israel and Hamas agreed to a deal to halt their fighting in the 
Gaza Strip, ending a 15-month war, also contributed to catapult oil futures 
prices. The front-month NYMEX WTI futures contract which surpassed the $80 bbl 
market, narrowing the spread against March ICE Brent futures contract to $1.89, 
the lowest since Nov. 8.  

   The front-month NYMEX WTI futures contract climbed by $3.05 to $80.55 bbl, 
while March ICE Brent futures contract rose by $2.52 to $82.44 bbl. February 
RBOB futures contract rose by $0.0649 to 2.1695 gallon. The front-month ULSD 
futures contract climbed by $0.1026 to $2.6279 gallon.

   RBOB futures contract were facing upward pressure driven by tight supplies 
after Colonial Pipeline announced that its Line 1 gasoline line in Georgia will 
be shut until Friday to investigate a potential leak. The 5,500-mile pipeline 
system begins in Houston, Texas and terminates in Linden, New Jersey.

   The U.S. dollar index continued its downward trending as it fell by 0.21% to 
108.95 against a basket of foreign currencies.




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