WTI crude oil gained 2.12% to settle at $83.26 per barrel after today’s CPI inflation report came in softer than expected. In addition, the Energy Information Administration (EIA) released its weekly Crude Oil Inventories report, which measures the weekly change in the number of barrels of commercial crude oil held by U.S. firms.
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Compared to last week, inventories increased by 597,000 barrels. For reference, economists were expecting a decrease of 583,000 barrels week-over-week. This means that demand was much weaker than anticipated. Nevertheless, this wasn’t enough to dampen the sentiment of oil traders.
Furthermore, the latest numbers from the American Petroleum Institute indicate oil reserves rose by 400,000 barrels in the week ended April 7. According to Bloomberg, Diamondback Energy (NASDAQ:FANG) is mulling an asset sale in the Permian Basin to capitalize on favorable deal trends.
Meanwhile, natural gas fell 4.25% to close at $2.093 per MMBtu. This is likely attributable to the EIA’s recent outlook, where it lowered its forecast for natural gas prices in 2023. Indeed, it now expects an average price of $2.94 per MMBtu compared to its previous forecast of $3.02.
The Energy Select Sector SPDR ETF (XLE) has put on a 2.55% gain on a year-to-date basis as cautious optimism continues in the markets. Here is a list of energy stocks that can be influenced by the latest developments in the energy markets.
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