Distillate stocks 'are brimming'

17/09/2009

The US report published earlier this week revealed stocks of distillates - such as heating oil and diesel - to be "brimming", according to Reuters, impacting on trader sentiment as a result.

With the nation's Energy Information Administration having placed distillate stocks around 2.2 million barrels, investors are said to have "eyed" the figures with some trepidation.

As such, the newswire anticipates a prolonged period of subdued prices for commodities such as diesel and heating oil in the weeks to come.

This is in spite of positive market sentiment that has seen oil prices gain around five per cent over the past week.

"Analysts said that weak fundamentals neutralised this potentially bullish news," Reuters adds.

The publication of the official figures had been pre-empted by the American Petroleum Institute in a report earlier in the week.

Investment news provider Bloomberg noted that the organisation anticipated stocks to move beyond their previous 26-year high level.