gpolit.com
gpolit.com December 17, 2017


Oil prices decline on rising USA stockpile

18 November 2017, 12:30 | Kenneth Drake

Oil prices decline on rising USA stockpile

Oil rises amidst expected extension of OPEC cuts

The West Texas Intermediate for December delivery was down 0.37 US dollar to settle at 55.33 dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery lost 0.34 dollar to close at 61.87 dollars a barrel on the London ICE Futures Exchange.

On Wednesday, the U.S. Energy Information Administration reported that crude inventories rose by 1.9 million barrels in the week ended November 10, a surprise build compared with analyst forecasts. Prices fell 37 cents to $55.33 on Wednesday.

Early yesterday, Brent crude, the worldwide benchmark dropped to $61 from the $64 recorded on November 7.

Oil prices fell on Wednesday, as increasing crude stockpiles and record high US production reignited worries about an oversupplied market. The American Petroleum Institute on Tuesday had reported a 6.5 million-barrel climb, according to sources.

Hedge funds and other speculative investors are more bullish than they've been in more than six months, according to data from the Commodity Futures Trading Commission.

Oil prices decline on rising USA stockpile
Oil prices decline on rising USA stockpile

As prices rise, "that can only encourage more and more USA production coming on board", said Tariq Zahir, managing member of Tyche Capital Advisors. This week's US oil rig count data, an early indicator of future output, is due at 1 p.m. Signs of rising USA output have dampened the impact of the deal restricting output agreed by the Organization of the Petroleum Exporting Countries (OPEC), Russia and several other producers.The agreement expires in March and was expected to be extended at OPEC's next meeting on November 30. The S&P Global Platts survey forecast supply declines of 1 million barrels for gasoline and 2 million barrels for distillates.

IEA reduced its oil demand growth forecast by 100,000 barrels per day (bpd) for 2017 and forecast 1.3 million bpd oil demand for 2018.

OPEC is expecting that inventories would rapidly go down by 670,000 barrels a day through the year if they maintain the supply limit. "Brent would break back below US$60 a barrel".

"It's no surprise that US production has edged higher given the higher oil prices", said Barnabas Gan, an economist at Oversea-Chinese Banking Corp.in Singapore. This "is likely to once again result in builds in broader petroleum inventories", Mr. Loewen wrote on Tuesday.

Distillate stockpiles, which include diesel and heating oil, fell by 799,000 barrels, versus expectations for a 1.3 million-barrel drop, the EIA data showed. Refinery utilization rates rose by 1.4 percentage points.



Other News

Trending Now

Chris Coleman set to leave Wales and take over at struggling Sunderland
But Coleman was to lead Wales to their first major tournament for 58 years and took them to the semi-finals of Euro 2016. Coleman's future was uncertain after failing to reach next summer's World Cup in Russian Federation .

North Korea slams Trump, says he 'begged for nuclear war'
Aegis ships and seven South Korean naval vessels, including two Aegis ships. The Aegis technology refers to missile tracking and guidance.

DC Comics Fires Eddie Berganza Over Alleged Sexual Misconduct
And then in 2010, former DC editor Janelle Asselin organized a group of employees to file a joint complaint to HR about Berganza. Dark Knights: Metal is now unfolding in DC Comics; DC Entertainment will release Justice League in theaters on November 17th.

MSOC #4 Seed in NCAA Championship
The Badgers defeated No. 4 seed Maryland 2-1 (Nov. 5) and No. 1 seed MI 4-0 (Nov. 10) on their way to the tournament crown. The second round match will be the 37th straight season the Cavaliers host at least one NCAA Tournament game.

Armenian PM extends condolences to First Vice-President of Iran on devastating quake
Hospitals in nearby provinces took in numerous injured, state television said , airing footage of survivors waiting to be treated. Footage from Sarpol-e Zahab, an Iranian town of 35,000 close to the Iraqi border, shows entire neighbourhoods reduced to rubble.

Resigned Lebanese Prime Minister Hariri Accepts Invitation to Come to France
Aoun has previously said he will not accept Hariri's resignation until he returns to Beirut to tender it and explain his reasons. Lebanese Foreign Minister Gebran Bassil has toured European capitals seeking diplomatic help to end the crisis.

Browne thanks England after World Cup snub from Scotland & Wales
Episode 36 of The Hard Yards rugby podcast features Tiernan O'Halloran and James Downey, with Tadhg Furlong on South Africa . This process, according to World Rugby , was transparent and fair - something which Ireland and France disagreed with.

Philippine president says he once stabbed a person to death
Duterte has adopted a clenched fist, often stuck out in front of his chest or sometimes at eye level, as his trademark gesture. With the photos becoming a major news item in Australia, Foreign Minister Julie Bishop was forced to publicly defend Warner.

NASA launching JPSS-1 weather satellite
Crews have postponed this morning's expected launch of a rocket that would have carried Idaho's first satellite into space. A scheduled early morning launch of a rocket from Vandenberg Air Force Base was a no-go.

Iran, Iraq Refuse Israeli Offer of Aid Following Deadly Earthquake
The map shows the buffer area almost abutting the town of Quneitra next to the Israeli-controlled Golan Heights. This weekend, a devastating natural disaster rocked parts of Iran and Iraq.