U.S. crude oil stocks drop

21 April, 2017, 03:31 | Author: Leticia Walters

Oil slid more than 1 percent on Wednesday, after US data showed a counter-seasonal build in gasoline inventories and a smaller-than-expected decline in overall crude stocks coupled with another rise in domestic crude production. Oil prices will increase as demand improves, chipping away at oil inventories in the second half, he said.

United States gasoline inventories hit 259.1 MMbbls for the week ending February 10, 2017-the highest level ever.

U.S. West Texas Intermediate (WTI) crude futures had risen 31 cents, or 0.61 percent, to $50.75 a barrel.

Crude futures were trading more than 30 cents higher in Asia early Thursday, but the recovery, against a rout of almost $2/barrel at the previous day's close, was more likely bargain-hunting than the start of a full correction, as the weekly counter-seasonal build in USA gasoline inventories continued to weigh on market sentiment. A surprise build in gasoline inventories pressured gasoline prices, which in turn pressured crude oil (IXC) (IYE) (SCO) (IEZ) prices on April 19, 2017.

Iran will probably be allowed to keep its oil production unchanged if OPEC decides to extend its six-month agreement on output cuts beyond June, Kuwaiti Oil Minister Issam Almarzooq said, adding that the Persian Gulf OPEC member has shown strong compliance with the OPEC supply cut deal. This was in contrast to what analysts had earlier projected - a dip of about 1.4 million barrels. Despite a drop in USA crude stocks last week, an unexpected 1.5-million-barrel build in gasoline stocks drove prices more than 3.5 percent lower on Wednesday. The decline was triggered by the surprise build in US gasoline stockpiles that point to weaker-than-expected demand at a time when consumption of gasoline usually rises. The report showed that Saudi Arabia's crude exports declined from 7.7 million barrels per day in January to 6.96 barrels per day in February.

At an energy conference in Abu Dhabi, Saudi Arabia's energy minister Khalid al-Falih hinted at the extensive behind-the-scenes negotiations among big oil producers ahead of the group's meetings scheduled for May. Distillate stocks reached their lowest levels since November 2015, the EIA said.

"With questions hanging over USA gasoline demand, any further product builds will act as a brake on the oil price recovery", he said.

Recommended:

  • Philippines goes ahead with ASEAN meet after foiling attack

    After the ASEAN meeting, Duterte and Widodo will fly to Davao to witness the launch of the Davao-Gensan-Bitung Roro route on April 30.

    IMF Says Global Growth Gaining Momentum

    Pernia sees growth starting this year on firm ground by 6.5-7% in the first quarter. Socioeconomic Planning Secretary Ernesto M.

    Mexican's immigration status is in dispute over deportation

    He is now staying with an aunt and uncle in Western Mexico while lawyers file a lawsuit to uncover the details of the deportation. The statement also noted Montes had a previous conviction for theft that resulted in probation, a fact the lawsuit admits.
  • Samsung Galaxy S8 phones launched in Qatar

    With screens of 5.8 inch and 6.2 inches, Samsung S8 and S8 Plus is the flagship phone of Samsung and a successor to the S7. The dual-camera setup, according to Kuo, will be the "most important upgrade" in the Galaxy Note 8.
    Caves beat Pacers and Spurs defeat Grizzlies, both lead 2-0

    Caves beat Pacers and Spurs defeat Grizzlies, both lead 2-0

    However, it was the Cavs' turnovers that allowed the Pacers to stick around, cutting a 13-point Cleveland lead down to five. He was a free agent after being released by the New Orleans Pelicans, who needed his roster spot because he was injured.

    Green Investment Bank to be sold off in £2.3bn deal

    An official announcement is expected to be made by Nick Hurd, the climate minister, on Thursday, the Guardian understands. The bank, based in Edinburgh, will also continue to operate its two offices in Edinburgh and London .
  • 'Mother of all bombs' kills at least 90 IS militants in Afghanistan

    According to USA officials, most of the members of the local Islamic State branch are Pakistani and Uzbek militants. Shinwari's spokesman, Ataullah Khogyani, said that a clearance operation in the area was continuing.

    Iran's Rouhani condemns US attack on Syria, chides Gulf Arabs

    The news agency reported that during the Friday phone call, the Saudi monarch congratulated Trump for his "courageous decision". On Friday, senior US military officials were looking more closely at possible Russian involvement in the poison attack.
    Rep. Jason Chaffetz is not running for re-election

    Rep. Jason Chaffetz is not running for re-election

    In February, he was drowned out by boos at a town hall meeting, where constituents shouted, " Do your job! ". Chaffetz said he announced now so that another candidate could rise in the 3rd Congressional District.
  • 'Star Wars Rebels' Trailer For Fourth And Final Season Promises Big Surprises

    'Star Wars Rebels' Trailer For Fourth And Final Season Promises Big Surprises

    Kennedy told the morning show, " Sadly, Carrie will not be in nine, but there is a lot of her in eight". But believe me, I can say I know what it's like when I don't get to end a series.
    Second suspect arrested over Stockholm truck attack

    Second suspect arrested over Stockholm truck attack

    Police had been looking for him since the Nordic country's Migration Agency in December gave him four weeks to leave the country. Explosives are said to have been found in the back of the beer truck that he hijacked from popular Swedish beermaker Sprendrups.

    Jackets' Werenski exits game after puck to face

    Unfortunately, all that aggression still saw them lose the game, as well as lose forward Matt Calvert to a one game suspension. Even when they would win series, they would too often leave the door open for opponents or let series go an extra game or two.


Popular

Is there life on Saturn's ocean-bearing moon Enceladus?
The next big mission for NASA is the Europa Clipper that will send a spacecraft to orbit Jupitar and make close flybys of Europa. In the paper , the Cassini scientists shared that Enceladus has a type of chemical energy, which life can feed on.

Samsung heir denies bribery charges at hearing
Samsung intends to announce its first-quarter net profit and sales by unit when it releases revised earnings later in April. The global recall of Samsung Galaxy Note 7 actually hammered Samsung with a loss of about $17 billion.

Leonard has 32 points, Spurs rout Grizzlies 111-82 in Game 1
Speaking of Beverley, here he is earning endangered species status when he runs into a screen by the Thunder's Steven Adams. The Thunder came into the night the superior rebounding team, but they grabbed just 42 percent of available rebounds.

Senators beat Bruins 1-0, take 3-1 lead in series
Bruins C Patrice Bergeron, a three-time Selke Trophy victor , was named a finalist for the award for the sixth time Wednesday. But a shot at redemption has come during the playoffs, and the Boston Bruins have been victimized by Ryan's resurgence.

Disputed Griezmann penalty gives Atletico edge over Leicester
We know it is going to be a hard return match but we have a very good record at the King Power. Wes has been out on the grass the last few days, which is really pleasing.