Crude Oil Dips After Inventories Data
- Author: Adam Floyd Oct 28, 2017,
Oct 28, 2017, 0:36
The EIA data also showed US oil production had returned to pre-hurricane levels, climbing to more than 9.5 million barrels a day.
Futures fell 0.6 percent in NY, halting three sessions of gains.
The U.S. Energy Information Administration reported that crude inventories rose by 856,000 barrels in the week to October 20.
Saudi Crown Prince Mohammed bin Salman said Friday his country would support the extension of an output cut agreement beyond its deadline next March, a move that would push prices higher with less production from the Kingdom, the world's biggest oil exporter. OPEC is said to be working on an exit strategy in an effort to reassure investors that the group will manage a controlled release of supplies to avoid a new glut when the curbs eventually expire.
Brent for December settlement was at $59.26 a barrel on the London-based ICE Futures Europe exchange as of 10:20 a.m.in London.
WTI for December delivery lost 2 cents to $52.62 a barrel on the New York Mercantile Exchange. Total volume traded was about 9 percent below the 100-day average. The global benchmark crude traded at a premium of $6.26 to WTI, the widest in more than four weeks.More news: Liam Payne present "Bedroom Floor" co-written by Charlie Puth
US oil exports, according to an emailed market report from S&P Global Platts, have "exploded" since late September and put more oil on the global market, offsetting some of the inventory build.
Oil inventories rose by 856,000 barrels last week, according to the US Energy Information Administration.
Meanwhile, global oil demand keeps rising.
The EIA data showed gasoline and distillate inventories both fell by more than 5 million barrels, and refinery utilization rates rose 3.3 percentage points.
"What is interesting is that the pop in WTI futures moved above the September 28 high", said David Thompson, executive vice president at Powerhouse, an energy-specialized commodities broker in Washington. "If you have strong products demand, that means refineries are going to buy more crude oil to create those products". Iraq sent more than 1 MMbopd last week to the USA, about 500,000 bpd more than the kingdom.
TransCanada Corp said in a filing on Thursday that it is seeking to raise the temporary discounted spot rate for light crude on its 700,000 barrel-per-day Marketlink pipeline.