Crude oil settles higher as Saudi oil chief discusses extending cuts

Marie Harrington
September 15, 2017

"OECD [Organisation for Economic Co-operation and Development] demand growth continues to be stronger than expected, particularly in Europe and the United States", the IEA said, adding that hurricanes Harvey and Irma are projected to slow USA oil demand growth in the third quarter. In August, Opec crude oil production decreased by 79 tbpd to average 32.76 mpbd, " the report stated.

U.S. West Texas Intermediate (WTI) was up 47 cents, or 0.9 percent, at $48.70 a barrel.

Traders have been watching the level of commercial crude oil and petroleum product inventories for much of the year in part to gauge the impact of an effort led by the Organization of Petroleum Exporting Countries to balance an oversupplied market with managed production declines.

Meanwhile, monthly reports from the Opec and International Every Agency due Tuesday and Wednesday, respectively, are expected to provide market participants with an update on Opec production and global demand forecasts.

Brent crude, the global benchmark futures traded 0.7 per cent higher at $54.65 per barrel at the time of writing.

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The latest Energy Information Administration (EIA) data recorded an inventory build of 5.9 million barrels for the week ending September 8th following a build of 4.6 million barrels the previous week.

US refinery utilization rates fell to 77.7 percent last week, the lowest since 2008, according to EIA.

The Kuwaiti bank said recovery may be limited by any increase in USA shale oil production, which could be likely if oil prices continue to rise.

The EIA also said refinery crude runs fell by 394,000 barrels per day.

Other reports by TheSundaySentinel

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