Oil prices decline after inventory data

Chelsea West
August 17, 2017

Gasoline stocks were unchanged, compared with analysts' expectations for a 1.1-million-barrel drop.

The American Petroleum Institute also reported a fall in United States crude stocks by 9.2 million barrels in the week ending 11 August, reaching a total of 469.2 million barrels.

Crude stocks at the Cushing, Oklahoma, delivery hub for US crude futures rose 678,000 bbl, the EIA said.

Refinery crude runs fell by 9,000 barrels per day, EIA data showed. Gasoline stockpiles rose for a second week and supplies at Cushing, Oklahoma, the delivery point for WTI and the biggest USA oil-storage hub, increased by 678,000 barrels.

Crude inventories probably fell by 3.38-million barrels, according to the median estimate in a Bloomberg survey before an Energy Information Administration report on Wednesday.

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The gains come after crude and Brent tumbled 1.6% and 1%, respectively, on Wednesday, as investors focused more on the big jump in average daily USA oil production, and not the bigger-than-expected drop in crude inventories there.

Brent crude futures LCOc1 climbed 27¢ to $51.07 per barrel, while the US West Texas Intermediate (WTI) crude futures CLc1 rose 20¢ to reach $47.75 a barrel, reported Reuters. Crude oil exports also rose, jumping to 877,000 bpd from 707,000 bpd.

USA output has filled part of that gap. While almost 70 million bbl of inventory decreases have been reported this summer, the market is waiting for a signal after the Labor Day holiday, when demand usually tapers, he said.

The US dollar rallied significantly during the Tuesday session against the Canadian dollar, as we continue to see bearish pressure on the oil markets.

Other reports by TheSundaySentinel

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