US Crude Inventories Rise Unexpectedly As Imports Jump

Eileen GuzmanAug 06, 2018

On Tuesday, crude oil futures for September ended down $1.37 or nearly 2%, at $68.76 a barrel.

U.S. West Texas Intermediate (WTI) crude CLc1 futures increased by 6 cents, or 0.1 percent, to $67.72 a barrel.

Prices had tumbled to a six-week.

The nation's production may remain around the 11.2 million barrels a day level for the remainder of the year, the government official said, citing the oil ministry's most recent calculations.

The weekly estimates for May all point to more than 10.7 million bpd of crude oil production, but the more accurate-albeit lagged-data, based on survey of producers, shows that US oil output had trailed projections by around 300,000 bpd.

Oil prices traded slightly higher on Thursday, reversing course after a report suggested crude stockpiles at the USA storage hub at Cushing, Oklahoma fell in the latest week. They fell 1.6 percent in the previous session.

U.S. Energy Information Administration said in a weekly report on Wednesday that the country's commercial crude inventories rose by 3.8 million barrels in the week through July 27, higher than market estimates of a decrease of 2.8 million barrels.

U.S. crude oil supplies increased by around 3.8 million barrels last week. "Yet, we remain much more concerned about the ongoing USA sanctions on Iran", analysts at Bank of America Merrill Lynch said in a research note published last week.

Oil last month posted the worst loss in two years on concern a trade war between the United States and China could curb economic growth and limit energy demand.

In comments to Kuwait's Al-Rai newspaper, Rashidi said, "We are reaching a very stable stage for the crude market, whether for producers or consumers".

Saudi Arabia's output rose by 230,000 barrels a day in July to 10.65 million barrels per day.

The higher supplies from OPEC and Russian Federation are contributing to growing signs of a new glut in the oil market and that is adding to concern a trade war between the US and China could curb economic growth and limit energy demand, which drove crude to the biggest decline in two years last month.

USA crude CLc1 was off by 5 cents at $68.91, after gaining almost 2 percent in the previous session. Mr Novak said that higher production was due to the need to maintain the market's stability. Total volume traded was about 30 percent below the 100-day average.

Whiting Petroleum Corp. gave up some of this year's stellar gains after reporting lower-than-estimated crude production for the second quarter.

Gasoline stocks fell by 2.5 million barrels, compared with analysts' expectations in a Reuters poll for a 1.3 million-barrel drop.

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