US Crude Stockpiles Drop The Most Since September

Randall Padilla
July 13, 2017

Without further cuts by OPEC and other producers or a significant fall in oil inventories or a decline in USA drilling, Goldman said crude prices could fall below $40 per barrel. OPEC cuts are expected to be extended and reports that both Libya and Nigeria will agree to a production quota puts the fate of global oil prices in the hands of US producers. However, Saudi Arabia has claimed to have ramped up its oil production by a staggering 190,000 bpd in June, putting the country back above the 10-million-bpd mark at 10.07 million barrels per day, based on direct communication with the cartel's de facto leader.

Libya and Nigeria, two OPEC members exempt from cutting output, once again led the increases.

OPEC agreed with some other major exporters to cut output about 1.8 million barrels per day until March 2018.

Editor's Remarks: US oil companies faced a 40-year ban on most crude exports until 2015.

NOC Chairman Mustafa Sanalla added Libya could assist with efforts to stabilize the market by informing OPEC about its plans to restore production. USA crude was 25 cents lower at $44.15.

In an emailed report, British financial services company Barclays said it "seems a stretch" for the average price for Brent crude oil, the global benchmark, to hit the mid $50 range during the third quarter.

Analysts polled by Reuters forecast that USA crude inventories fell 3.2 million barrels while gasoline and distillate stocks each rose by 1.5 million barrels.

USA oil production is booming.

Earlier this week, at an oil conference in Istanbul, Kuwait's oil minister, Essam Al Marzouq, said Mr Kachikwu would not be able to take up an invitation to attend the Russian Federation meeting, but he hoped a Nigerian delegation would attend anyway.

Gasoline futures gained 0.25 cent, or 0.2%, to $1.5208 a gallon, the 10th gain in 12 sessions.

WTI Crude oil prices posted sixth weekly loss in the past seven weeks amid concerns over supply glut, which is neutralising the impact of OPEC's output cut extension and strong global demand.

"OPEC news remains mixed, with Saudi Arabia raising production while reducing exports to meet increased domestic demand", Ole Hanson, the head of commodity strategy at Saxo Bank, told UPI.

Oil supply, the EIA said, is poised to drop before the demand for oil starts to wane, meaning there is a period of high oil prices up ahead. The latest OPEC monthly report, containing June production figures, is scheduled to be published later on Wednesday.

Other reports by AllAboutTopnews

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