US Crude Stocks Dip, But Gasoline Inventories Rise

The price increases on Thursday followed a more than 3.5 per cent drop in both crude benchmarks during the previous session after the EIA reported surging gasoline inventories as well as another rise in United States crude oil production to 9.25 million barrels per day (bpd), up nearly 10 per cent since mid-2016.

A preliminary Reuters poll showed analysts expected data to show USA crude stocks fell in the week to April 14, building on a surprise decline the previous week.Analysts said they expected the data to show crude inventories fell around 1.5 million barrels last week. Gasoline inventories rose by 1.5 million barrels, though distillates fell, EIA said.

WTI was trading 30 cents lower at $52.35 a barrel on the New York Mercantile Exchange at 10:34am London time on Tuesday.

OPEC agreed to cut output by 1.2 million barrels a day for the first six months of 2017, while 11 other non-OPEC countries including Russian Federation agreed to limit supply.

Oil dropped to a two-week low after a report showed us gasoline supplies gained for the first time in nine weeks as crude output rose.

After strong gains overnight, the price for Brent crude oil, the global benchmark, was down 0.1 percent to $52.88 per barrel.

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. While that news is particularly shocking, gasoline inventories saw a rather unexpected build of 1.374 million barrels-analysts were expecting a 2.2-million-barrel draw for the fuel instead.

Speaking at the 3rd annual Gulf Intelligence media forum in Abu Dhabi, Barkindo said March compliance data shows "higher conformity" with the OPEC output cut deal, Gulf Intelligence tweeted. Brent on the ICE Futures Europe exchange was down 35 cents at $55.01 a barrel.

Kuwaiti Oil Minister Issam Almarzooq told Bloomberg that Iran would likely keep its output flat if the cuts are extended.

Prices rallied by 15 per cent since November 30, 2016 when Opec's 13 members led by the group's largest producer Saudi Arabia, agreed to curb output by more than one million barrels a day.

May's output for the U.S.is forecast to have the biggest monthly increase since February 2015.

Recommended News

  • 'Playoff Rondo' delivers for Bulls with near triple-double in Game 2

    'Playoff Rondo' delivers for Bulls with near triple-double in Game 2

    That changed quickly, though, as the Bulls responded with a 20-4 run. "You play 82 games to learn a little bit about yourself". The Bulls answered several runs by the Celtics in the second half when they had closed to within single-digit deficits.

    Stephen Colbert and 'Stephen Colbert' bid farewell to Bill O'Reilly

    When announcing his Easter vacation on air, O'Reilly claimed that the vacation was a longstanding, pre-planned trip . She represents Roginsky in her April 3 filed sexual harassment and retaliation suit against Ailes and FNC.

    Delhi Congress ex-chief Arvinder Singh Lovely quits party, joins BJP

    The party is now a sinking ship but the senior leadership seems to be in a denial mode. Maken said that undercover symbiosis between AAP and the BJP is no more a secret.
  • Atlas V Rocket Poised To Launch Supplies To ISS

    The Soyuz is scheduled to take the express route to the station, arriving just a little more than six hours after launch. The crew will use the station's robotic arm to grapple the capsule and hook it up to the Unity module for unloading.

    Independent autopsy completed on Aaron Hernandez

    It might allow Hernandez's estate to collect about $6 million that the Patriots owed to him prior to his murder conviction. Hernandez was convicted in the 2013 murder of Lloyd and sentenced to life in prison without parole.
    Google marks Earth Day with its Doodle

    Google marks Earth Day with its Doodle

    They will cultivate school gardens, learn about the process of recycling and the basics of sustainability. Green technologies are not only good for the environment, they lead to high tech, better paying jobs.
  • Barista goes bonkers over Starbucks Unicorn drink in viral rant video

    Barista goes bonkers over Starbucks Unicorn drink in viral rant video

    The aesthetic of this drink, while pretty, is not one of unicorns but rather that of Instagram accounts and beauty gurus. Braden Burson from Monument starts calmly, explaining the basics of the sparkly, purple-and-blue frozen concoction.

    Inside Paisley Park on the anniversary of Prince's death

    She wore a pendant of Prince's symbol, which she had also spray-painted in black along the legs of her white trousers . Like most fans, I wanted to see him, but I never would have approached him.
    PM Modi announces credit of $4.5 billion to Bangladesh

    PM Modi announces credit of $4.5 billion to Bangladesh

    Modi's remarks came in the presence of Bangladesh PM Sheikh Hasina as the two leaders paid tributes to the heroes of 1971 war. Her feelings for Bangladesh are as warm as my own. "India has always stood for the prosperity of Bangladesh and its people.
  • Mattis calls on U.N.-brokered end to Yemen civil war

    Mattis calls on U.N.-brokered end to Yemen civil war

    Iran wants to turn Yemen into a "missile base" from which it can threaten Saudi Arabia, according to a Saudi general. Bahrain also lost five soldiers, though it was not clear if they were killed in the same incident.
    EU says ready to welcome back UK if it decides to stay

    EU says ready to welcome back UK if it decides to stay

    He said Mrs May's U-turn on her previous insistence that she would not call a snap election showed she could not be trusted. Liberal Democrat leader Tim Farron said that broadcasters should hold debates anyway, with an empty chair in May's place.

    Ledell Lee Executed After All Stays of Execution Lifted by SCOTUS

    A coroner pronounced Lee dead seven minutes later after opening Lee's eyelids and checking his chest with a stethoscope. The Arkansas Supreme Court said in a 4-3 ruling that it would not reconsider its decision to stay Johnson's execution.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.