RIYADH: Oil lost ground for the fifth time in the last six days on Wednesday as traders reacted to hoped-for progress in Russia-Ukraine peace talks and a surprising increase in US inventories.
The oil market has been on a roller-coaster for more than two weeks, and both major benchmarks have traded in their largest high-to-low range over the last 30 days than at any time since the middle of 2020.
Wednesday was no different, as global benchmark Brent traded in a $6 range, between $97.55 and $103.70 before settling at $98.02, down $1.89 a barrel, or 1.9 percent. US West Texas Intermediate crude ended down $1.4, or 1.5 percent, at $95.04 a barrel.
US inventories rose by 4.3 million barrels, against expectations for a loss, while stocks at the Cushing, Oklahoma, hub rose as well, alleviating a bit of concern about the low level of inventories there.
Reduced exports could see loss of up to 3 million bpd of Russian oil, says IEA
Up to three million barrels per day of Russian oil and products may not find their way to market beginning in April in the wake of its invasion of Ukraine, the International Energy Agency said on Wednesday, as sanctions bite and buyers hold off.
“Of the cutback, we see a reduction in total exports of 2.5 million bpd, of which crude accounts for 1.5 million bpd and products 1 million bpd,” the IEA said in its monthly oil report.
Additionally, it projected lower Russian domestic demand for oil products.
Japan sets date for auction of oil from reserve
Meanwhile, Japan will hold an auction on April 8 to sell about 1.89 million barrels, or 300,000 kiloliters, of oil from its national reserve, the industry ministry said on Wednesday.
Supply will be available to winning bidders from May 20, the ministry said in a statement.
Totalenergies says it withdraws from Myanmar
TotalEnergies on Wednesday said PTTEP International, a subsidiary of the Thai national energy company PTT, would take over equity stakes in local units and resume some of its operations in Myanmar.
The French oil and gas giant in January announced its decision to withdraw from the Asian country.
India's first-half March fuel sales rise
Indian state fuel retailers posted robust growth in gasoline and gasoil sales in the first half of March, preliminary fuel sales data showed on Wednesday, as consumers and dealers topped tanks ahead on the likelihood of a fuel price hike after March 10.
The state retailers sold 3.53 million tons of gasoil from March 1 to 15, up 32.8 percent from last month, the data showed. Sales of gasoline were 1.24 million tons in the same period, up 18.8 percent from last month.
Wheat, corn ease while soybean climbs
US wheat and corn futures eased on Wednesday, as Ukrainian officials gave upbeat assessments of their peace talks with Russia, lifting the likelihood of the Black Sea region opening up soon for grain exports.
Soybeans rose on firm edible oil prices and as the market closely monitored drought conditions in South America, fueling concerns of tight supply.
The most-active wheat contract on the Chicago Board of Trade Wv1 was down 0.24 percent at $11.51-1/2 a bushel, as of 0408 GMT, after rising more than 5 percent in the previous session.
Corn Cv1 dropped 0.46 percent to $7.54-1/2 a bushel, while soybeans Sv1 rose 0.63 percent to $16.69-1/4 a bushel.
Asian share markets up
Asian share markets rose on Wednesday, with investors’ eyes on volatile oil prices, Ukraine-Russia peace talks, and the US Federal Reserve, which is expected to raise rates for the first time in three years and give guidance on future tightening.
The rise in Asian shares came a day after mainland and Hong Kong equity indexes had tumbled in reaction to spiking coronavirus infections in China and fading expectations for a rate cut by the People’s Bank of China.
Investor sentiment remained weak, however. And the strong early rebound in China’s CSI300 index had evaporated by late morning on Wednesday, while Hong Kong’s Hang Seng index also trimmed gains.
The Hang Seng was last up 1.7 percent after opening 3.6 percent higher, while the CSI300 was down 0.6 percent from a rise of nearly 1.9 percent earlier.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8 percent.
(With inputs from Reuters)
