WTI contract for March delivery gained to $102.80 on expectation of fall in distillates inventories.
Crude oil prices gained as distillates inventories for the week ended 21st Feb is expected to fall by 1.5 million barrels, 1.161m more than last withdrawal. Energy Information Administration will release inventory data at 1530 GMT tomorrow.
American Petroleum Institute will first release crude oil and distillate inventory data at 1030 GMT today. It will brief about the last week demand for crude oil. Market is also expecting that inventory has fell at Cushing and Oklahoma, centers for future delivery, for last week.
Heating fuels demand has remained high this winter on below average temperature and long lasted cold. All energy commodities remained in bullish trend till last week. GSCI Index for Energy Commodities gained by 4.03% in last one month.
WTI has gained 4.43% this year and ranked 10th among the list of high return providing commodities. Slow economic growth at China and U.S., two largest consumers of crude oil, may hamper demand after the end of winter. We are expecting that WTI prices may edge down with the change in weather condition next month.