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Crude futures climb as inventories drop

By Daniel Tyson

17:14, 22 December 2021

Derricks in an oil field
Crude oil futures rising as oil inventories decline - Photo: Shutterstock

Oil futures continued to gain strength Wednesday morning after the US Energy Information Administration said crude inventories dropped by 4.7 million barrels last week.

At 11:45 am (UTC-5) West Texas Intermediate futures for February 2022 delivery were up nearly 1% to $71.82 a barrel, while Brent crude was trading at $74.55 a barrel, up 0.77%.

A S&P Global Platts survey of analysts had, on average, crude stocks falling by 3.9 million barrels.

“From an oil demand perspective, if we’re not going to lock down the economy and Omicron peaks, then the selloff that we’ve seen in the oil market in recent weeks is obviously way overdone. In fact, if you look at the early indication of oil inventories, they are tightening around the globe and that trend should accelerate in the coming weeks,” Phil Flynn, senior market analyst at Price Futures Group in Chicago told

Decline in stocks

On Tuesday night, the American Petroleum Institute l showed a 3.67-million-barrel decline in weekly stock.

Oil - Brent

75.98 Price
+2.030% 1D Chg, %
Long position overnight fee -0.0174%
Short position overnight fee -0.0045%
Overnight fee time 22:00 (UTC)
Spread 0.045


23.02 Price
-3.350% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee 0.0122%
Overnight fee time 22:00 (UTC)
Spread 0.020


2,004.85 Price
-1.180% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.50

Oil - Crude

71.41 Price
+2.320% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee -0.0015%
Overnight fee time 22:00 (UTC)
Spread 0.030

“The big building gasoline supplies of 3.701 million barrels help keep the market reaction subdued. Still, from a seasonal perspective, this time of year gasoline inventory should be building, and we are still below average right now,” he said.

Gasoline supplies jumped by 5.5 million barrels during the week ending 17 December, a much higher-than-expected increase. Meanwhile API data showed a jump of only 3.7 million barrels. Thursday gasoline was trading up $4.03 a gallon, up 4.21%.

The EIA said distillate stocks rose by 400,000 barrels. Analysts were anticipating a decline of 1.6 million barrels. Meanwhile, API data show a decline of 849,000 barrels.

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The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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