Oil prices high on expectations of USA inventory drains

Oil prices high on expectations of USA inventory drains

The market was bolstered modestly by data showing a sharp decline in US production last week.

Late Tuesday, the American Petroleum Institute reported total US crude oil inventories dropped a whopping 11.19 million barrels, blowing past the paltry 3.5 million barrel draw expected from commodity pricing group S&P Global Platts. On Friday, U.S. President Donald Trump is widely expected to deny a waiver on oil-related sanctions under the terms of the United Nations -led nuclear agreement, a decision that could shelve millions of barrels of Iranian oil on the European market. "But market participants could also use the sharp drop in production as an excuse to buy", said Carsten Fritsch, oil analyst at Commerzbank AG in Frankfurt, Germany.

Oil prices posted gains in all the four past sessions this week.

Brent for March settlement advanced to $69.90 a barrel on the London-based ICE Futures Europe exchange at 11:28 Eastern time.

Oil prices have surged more than 13 per cent since early December, and there are indications of overheating. Oil traders have closely watched US crude production to see whether output gains from USA shale formations will surpass the 1.8 million bpd cuts.

More news: Bills fire offensive coordinator Rick Dennison
More news: Download the Stat Attack podcast for Premier League predictions
More news: Toyota Unveils The GR Super Sport Concept

Much of the production growth will be concentrated in the Permian Basin, the largest US oilfield stretching across Texas and New Mexico, said John Staub, the EIA director of the office of petroleum, natural gas and biofuels analysis. A weaker dollar generally boosts oil, which is priced in the USA currency.

WTI and Brent soared to three-year highs on Tuesday before the data on the expectation that crude oil inventories would decline yet another week, along with EIA's updated forecast for oil demand growth that shows an increase over previous figures of 100,000 bpd.

The rally has brought out some concerns that the market could overheat, especially as USA production is expected to rise to new records.

US crude oil production is expected to hit 10 million bpd next month, behind only Russian Federation and Saudi Arabia.

The GHP now expects Houston to add 45,500 jobs in 2018, but it believes employment levels will stay flat among oil producers, based on recent oil-price forecasts by the Energy Information Administration. OPEC, along with non-members including Russian Federation, have extended through the end of this year a deal to cut supply by 1.8 million bpd.

Related Articles

  • Scientists captured the super-massive black hole while burping

    Scientists captured the super-massive black hole while burping

    Supermassive black holes are the largest form of the space giant and are typically found in the centre of big galaxies. The answer lies in a companion galaxy that is linked to J1354 by streams of stars and gas, said Comerford.
    Department Of Education Finds Texas Violated Special Education Law

    Department Of Education Finds Texas Violated Special Education Law

    Abbott also asked TEA to develop legislative recommendations to ensure school districts throughout Texas comply with the upcoming changes.
    Ryan: Reported '****hole' comment by Trump 'very unfortunate, unhelpful'

    Ryan: Reported '****hole' comment by Trump 'very unfortunate, unhelpful'

    Ryan said his family came from Ireland to the United States, worked manual labor jobs, and faced discrimination. He then said their story of overcoming that oppression was "a lovely story of America".
  • Wal-Mart Stores (WMT) Upgraded to Buy at Citigroup

    Wal-Mart Stores, Inc. (NYSE: WMT ) has risen 13.83% since January 12, 2017 and is uptrending. (NYSE: WMT ) or 2,065 shares. Teachers Insurance & Annuity Association Of America increased Wal ( WMT ) stake by 18.32% reported in 2017Q3 SEC filing.
    Maharashtra violence: Shiv Sena tears into Centre

    Maharashtra violence: Shiv Sena tears into Centre

    As an argument between some assembled Dalits and right-wing groups spun out of control, a 28-year-old Maratha was killed. Regarding this tension is Maharashtra, Jignesh Mewani tweeted, "Maharashtra government must ensure rule of law".
    Spanish, Dutch have no new agreement on Brexit, Dutch official says

    Spanish, Dutch have no new agreement on Brexit, Dutch official says

    Spanish economy minister Luis de Guindos and his Dutch counterpart Wopke Hoekstra met earlier this week and discussed their common interests in Brexit, according to the person.
  • Here's How Some Places Trump Called "Shitholes" Are Reacting To His Comments

    The Southern African country has called other SADC members to condemn the remarks made by President Trump . The president's repulsive comments undermine the fundamental values of who we are as a country.
    New York City Announces Plan To Divest From Fossil Fuels

    New York City Announces Plan To Divest From Fossil Fuels

    Campaigners used the second anniversary of the Paris agreement to call for more effort to encourage divestment from fossil fuels. New York City is taking a stand, and it is a city that tends to set the fashion.
    MSNBC's Chris Matthews Joked About Drugging Hillary Clinton

    MSNBC's Chris Matthews Joked About Drugging Hillary Clinton

    A female producer who said he made inappropriate comments in the workplace reportedly received separation-related compensation. Throughout the years, he has also called her " witchy ", "anti-male" and "uppity", while referring to her laugh as a "cackle".
  • Star Wars: Rivals is an upcoming third person shooter

    Star Wars: Rivals is an upcoming third person shooter

    The game also lets players join Guilds, allowing them to climb up the Arena Leaderboards and claim additional rewards. Users on iOS get access to Rebel Special Forces, the most elite soldiers in the Rebellion if they register now.
    Trump tweets spark confusion ahead of FISA vote

    Trump tweets spark confusion ahead of FISA vote

    He suggested that a vote on the bill should be delayed until the White House's position can be ascertained. The House is voting Thursday on possible changes to the legislation, and the Senate must also take action.
    South Korea proposes joint march, hockey team with North Korea at Olympics

    South Korea proposes joint march, hockey team with North Korea at Olympics

    Yet, Washington is thought to have maintained back-channel negotiations to push via diplomatic channels at the United Nations. The International Olympic Committee said Monday it has "kept the door open" for North Korea to take part in the games.