Energy commodities were mixed on Wednesday, with heating and Brent oil moving higher and natural gas and crude oil retreating. A larger than expected decline in the US crude oil stockpiles boosted energy commodities in the early US trade. Meanwhile, supply concerns also pushed energy prices up.
Crude oil erased previous gains on profit-taking after the commodity hit three-month high. US crude oil inventories declined by 3.7 million barrels last week compared to expectations of a 0.26 million barrel fall.
Brent oil added 0.12% on hopes for monetary stimulus from China. A decline in US crude inventories coupled with supply disruptions caused by tropical storm in the Gulf of Mexico continued to support energy prices.
Natural gas tumbled on cooler weather forecasts in the US. Cooler weather dents demand outlook as less gas powered electricity is required for air-conditioning.
Heating oil was the top-performer, gaining 0.6%. US distillate fuel inventories declined by 0.7 million barrels last week and are below the lower limit of the average range for this year period.