Crude oil futures decline on overseas leads

Chelsea West
December 1, 2017

Oil futures rose on Wednesday as US crude stockpiles fell last week, countering doubts about Russia's willingness to extend substantially a deal among exporters to curb output.

Crude futures bounced around on the news, but as of 10:56 a.m. EST (1556 GMT), oil prices were marginally higher, with US crude at $58.22 a barrel, up 23 cents on the day.

Brent crude futures fell by 0.69 percent to $63.17 per barrel, meanwhile U.S. West Texas Intermediate (WTI) crude futures dropped by 0.31 percent to $57.68 per barrel.

Kuwait's oil minister said Wednesday that the Joint Ministerial Monitoring Committee of OPEC and non-OPEC countries has recommended that producers extend the cuts by six or nine months, according to a report from the Financial Times (https://www.ft.com/content/ce188608-6b1e-3832-bcd4-4a847bdf5b4c).

Data released Wednesday by the U.S. Energy Information Administration revealed U.S. commercial crude inventories dropped by 3.4 million barrels, versus expectations for a 2.3-million-barrel drawdown.

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Gasoline stocks rose 3.6 million barrels, compared with forecasts for a 1.2 million-barrel gain. Distillate inventories, which include diesel and heating oil, rose 2.7 million barrels, versus expectations for a 230,000-barrel increase, the EIA data showed.

Total domestic crude production, however, climbed by 24,000 barrels to 9.68 million barrels a day last week.

Gasoline stockpiles were up 3.6 million barrels for the week, while distillate stockpiles added 2.7 million barrels, according to the EIA.

Failure to extend the agreement for the full nine months could therefore spark a sharp correction, but pressing ahead will fuel concerns about the market tightening too much by the end of 2018.

Other reports by TheSundaySentinel

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