Crude Settles Down Ahead Of API Reading On US Stockpiles

Sep 23, 2017, 01:19
Crude Settles Down Ahead Of API Reading On US Stockpiles

US gasoline stockpiles fell by 2.13 million barrels last week to 216.2 million, the Energy Information Administration reported Wednesday.

Oil prices remained at $55.50 per barrel despite reduced output from OPEC that aims to constrict the market and shore up the prices.

Iraq, the second largest producer in the Organization of the Petroleum Exporting Countries, said on Tuesday it has limited its output by around 260,000 barrels per day (bpd), exceeding the 210,000-bpd agreed under OPEC production cuts.

Brent for November settlement advanced $1.03 to $56.17 a barrel on the London-based ICE Futures Europe exchange.

Brent crude futures were up 48 cents at $55.62 a barrel by 1020 GMT, while US West Texas Intermediate (WTI) crude futures rose 54 cents to $50.02.

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That's the contention of Bloomberg, which again pointed to International Energy Agency data showing that if OPEC continues to produce at current rates - about 32.7 million barrels per day (bpd) - global inventories will accumulate rather than diminish next year, by about 300,000 bdp.

Refinery crude runs rose by 1.1 million barrels per day, EIA data showed.

Meanwhile, the American Petroleum Institute, an industry group, reportedly said Tuesday that US crude inventories had risen by 1.4 million barrels in the week ended September 15.

Oil prices dipped during Thursday's trade due to hike in United States crude inventories and production as well as stronger dollar.

While Iraq's Oil Minister Jabbar Al-Luaibi said on Tuesday that some nations were talking about a further 1 percent cut, his Russian counterpart Alexander Novak told RIA Novosti on Wednesday that there's no formal proposal to do so. "The question now is whether the $50-per-barrel WTI price is attractive enough for shale producers to sell their production forward".

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"We could see some payback in oil prices in the short term", Pedersen said.

Some market participants think the amount of crude swirling in the market in the aftermath of Hurricane Harvey was being underestimated, and prices could come under more pressure.

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 703,000 barrels, EIA said.

U.S. crude production reached 9.51 million bpd last week, up from 8.78 million bpd after Hurricane Harvey hit the U.S. Gulf late August.

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