Sábado, 25 Noviembre, 2017

Oil slides 3.8 percent to two-week low on USA gasoline build

A petro-industrial factory is reflected in a traffic mirror in Kawasaki near Tokyo A petro-industrial factory is reflected in a traffic mirror in Kawasaki near Tokyo
Manuel Armenta | 21 Abril, 2017, 03:26

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. Andrew Lipow, president of Lipow Oil Associates in Houston, said some in the market were concerned about the rapid recovery in shale production."Perhaps the amount coming out of the ground might be more than we anticipate", he said. However, that level was still near a record high. WTI rallied more than 1% early on Thursday after Saudi oil minister Khalid Al-Falih suggested major oil producers could extend their agreed upon cuts.

On the New York Mercantile Exchange, May West Texas Intermediate crude rose 6 cents, or 0.1%, to $50.50 a barrel after tapping a low of $50.21.

Brent crude futures LCOc1 fell 85 cents, or 1.6 percent, to $54.04 a barrel as of 12:31 p.m. EDT, while USA crude futures CLc1 lost 77 cents, or 1.4 percent, to $51.64 a barrel.

Saudi oil production in February was 10.011 million bpd, and that's the same figure the Saudis had reported to OPEC for their production that month.

The continued growth in USA production and the rise in stockpiles forced the market to respond bearishly based on the increased inventory outlook.

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.

Traders said that the slight gains came on the back of a reduction in commercial U.S. crude stocks, which fell by 1 million barrels last week to 532.34 million barrels, according to the U.S. Energy Information Administration (EIA).

Crude inventories fell by 1 million barrels in the week to April 14, compared with analysts' expectations for an decrease of 1.5 million barrels. Gasoline stocks posted a counter-seasonal build of 1.5 million barrels, despite heavier refining activity.

"Five of the last trading days we've been lower", he said.

However, any interpretations of an oversupplied market moving towards a balance become questionable if product stocks start rising, especially gasoline, which should now be seeing a seasonal hump in demand.