U.S. likely to curtail gasoline production

Amid high volatility Brent has recovered after declining in the previous sessions and continues to hold its ground above the $30 per barrel mark. However, WTI dropped below $27 per barrel, trading marginally above the twelve-year low hit in January. The weakness in WTI comes in after the U.S. Department of Energy reported the crude oil stocks at Cushing rose to a record level of nearly 65 million barrels.

Decrease in crude oil imports by 1.1 million barrel per day has aided to reduce the inventory. However, crude oil stocks will pile up further as the imports are expected to increase. Crude oil processing by refineries is likely to decline further as a number of refinery operators in the U.S. have announced that they will be restraining gasoline production as gasoline stocks have reached record-high.