11-Jan-2025 14:59

WTI Crude Oil futures climbed near $77 per barrel, supported by expectations of higher heating fuel demand due to prolonged cold weather in the Northern Hemisphere. Investors also eyed a robust December nonfarm payrolls report as it showed strong labour market. A seventh straight weekly decline in US crude stockpiles indicated strong demand. The U.S. Energy Information Administration reported an estimated inventory draw of 1 million barrels for the first week of 2025. The EIA also estimated builds in fuel inventories but both gasoline and diesel stocks remain below the five-year average. The crude inventory draw compared with another modest of 1.2 million barrels for the last week of 2024, which was accompanied by substantial builds in gasoline and middle distillates that failed to elicit a bearish response from the market at the time. In gasoline, the Energy Information Administration estimated an inventory jump of 6.3 million barrels for the period, with production at an average 8.9 million barrels daily. This compared with an inventory build of as much as 7.7 million barrels for the last week of 2024, when production averaged 9 million barrels daily.

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