Oil prices fall as USA crude stocks pile up

Crude prices rise on signs of drop in global inventories

Total OPEC production, based on August figures from secondary sources, is about 0.3 percent higher than the average for 2016 and 3 percent higher in 2015, when the price of oil began to lose grip on $100 per barrel for the foreseeable future.

Oil prices rose on Wednesday after Iraq´s oil minister said Organization of the Petroleum Exporting Countries (OPEC) and other crude producers were considering extending or even deepening a supply cut to curb a global glut, while a report showed a smaller-than-expected increase in us inventories.

Oil prices hit a four-month high on bullish data from the Energy Information Administration (EIA), strong global and USA demand and the fact that oil products are at a multi-year low (see chart below).

Brent crude futures rose $1.06, or 1.9 percent, to $56.20 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 93 cents, or 1.9 percent, to $50.41.

Opec and non-Opec producers including Russian Federation have agreed to reduce output by about 1.8 million barrels per day (b/d) until March to reduce global oil inventories and support prices.

Oil prices advanced Wednesday amid ongoing optimism that production cuts have shown some success in bringing down global inventories. Its production was 32.6 million barrels a day in June.

While Iraq's Oil Minister Jabbar Al-Luaibi said on Tuesday that some nations were talking about a further 1 percent cut, his Russian counterpart Alexander Novak told RIA Novosti on Wednesday that there's no formal proposal to do so.

Distillate stockpiles, which include diesel and heating oil, fell by 5.7 million barrels, versus expectations for a 1.6 million-barrel drop, the EIA data showed. The EIA's next weekly dataset is on Wednesday. "The latest data suggests that even if it is, they would not do so just yet", said Tamas Varga, analyst at PVM Oil in London.

Some market participants, however, think the amount of crude swirling in the market in the aftermath of Hurricane Harvey was being underestimated.

"Talk on the inventory report for this week is for a 4-5 million barrels build in crude", said Scott Shelton, a broker for ICAP in Durham, North Carolina.

Moreover, even if this week's OPEC meeting ends on a high note and supports the argument that their cuts have been effective, any revival in prices will be short lived thanks to the unstoppable USA shale industry, which rebounded from Hurricane Harvey far quicker than anyone had predicted.

Related news:

Hot News

isis-killer-beheading-video-story-top Pilot union BALPA urges Ryanair to improve working conditions
Sep 22, 2017 - 00:38
It said new contracts "should help stop the large number of colleagues who are leaving for 'greener pastures'". Until now, they say, they've been scattered and isolated, making them much less powerful.

isis-killer-beheading-video-story-top China must deploy North Korean sanctions now
Sep 22, 2017 - 00:38
The North conducted its sixth nuclear test on September 3 and was subsequently hit with tough, fresh United Nations sanctions. North Korea has lived under threat from United States for nearly seven decades.

isis-killer-beheading-video-story-top Fil-Am singer Angelica Hale finishes 2nd in 'America's Got Talent'
Sep 22, 2017 - 00:32
Farmer also went away with $1 million and a headlining gig at Planet Hollywood in Las Vegas from September 3-4. Darci performed with two puppets - Oscar the mouse and Petunia the bunny - according to the Huffington Post .

isis-killer-beheading-video-story-top Blue-State House Republicans Won't Like Graham-Cassidy
Sep 21, 2017 - 00:40
According to STAT News , the states that would see the most drastic cuts are the ones that expanded Medicaid under the ACA. On Tuesday, asked by The Intercept about the status of his legislation, he said that the bill's cosponsors, Sens.

isis-killer-beheading-video-story-top At least 217 dead after 7.1 magnitude quake strikes Mexico
Sep 21, 2017 - 00:39
Below you see a graph published by CNN based on the information of the US Geological Survey , with the intensity of this quake . Shawn later announced that the safest thing to do would, unfortunately, be to cancel his planned Mexico City concert.

isis-killer-beheading-video-story-top Warning! Hackers Hid Malware in CCleaner Antivirus Software
Sep 20, 2017 - 00:52
He apologised for any inconvenience that had been caused and said the company's investigation into the attack was "ongoing". Hackers Hid Malware in CCleaner Antivirus Software appeared first on InvestorPlace .

isis-killer-beheading-video-story-top Hurricane Maria devastates Dominica island
Sep 20, 2017 - 00:51
In this photo A auto passes next to a banner warning of a "Red Alert " for rains as Hurricane Maria approaches in Pointe-a-Pitre. We have 500 shelters, (we're) moving people to those shelters and hopefully weathering the storm so we can rebuild Puerto Rico".

isis-killer-beheading-video-story-top Clayton Kershaw gives up 1st grand slam, loses to Phillies
Sep 20, 2017 - 00:51
Justin Turner and Corey Seager each went 1-for-3 and have hit safely in eight of nine games for Los Angeles. The Dodgers had three home runs themselves but it wasn't enough to counteract Altherr's one sweet shot.

isis-killer-beheading-video-story-top Rohingyas pose security threat: Govt to apex court
Sep 19, 2017 - 01:02
CJI responded, "The court will only go by law and petitioners must now go through the affidavit filed by the government". NHRC issues notice to the Centre over its plan to deport the Rohingya immigrants, residing in various parts of India.

isis-killer-beheading-video-story-top Ryanair CEO takes rap for costly cancellations 'cock up'
Sep 19, 2017 - 00:55
He said: "Travellers affected will be understandably upset and have every right to expect help and support from the airline". On Saturday, the airline released a list of all of the flights that have been cancelled until Wednesday September 20.

isis-killer-beheading-video-story-top Trump retweets GIF of him hitting Clinton with golf ball
Sep 18, 2017 - 00:40
In July, he posted a video to his account that showed him punching a physical representation of CNN in the face. The original video of Mrs Clinton is from 2011 and does not show a golf ball.

isis-killer-beheading-video-story-top Trump says London train attackers known to police
Sep 17, 2017 - 00:50
Stephanopoulos asked May if a travel ban is something she would reconsider in light of Friday's terror attack. The travel ban bars certain people from Iran, Libya, Somalia, Sudan, Syria and Yemen from entering the US.

isis-killer-beheading-video-story-top HBO Boxing: Canelo vs. Golovkin Results
Sep 17, 2017 - 00:43
I am ready to reign at the top of the middleweight division for a long time , ” Canelo told BoxNation . While Alvarez , 27, has strengthened both his body and skill, Golovkin , 35, has shown some slips.

isis-killer-beheading-video-story-top Kremlin accuses West of "whipping up hysteria" over Russian war games
Sep 15, 2017 - 00:41
After these military preparations many troops stayed in the area to participate in the subsequent war with Ukraine. Back in 2008, military exercises also preceded Russia's invasion of Georgia.

isis-killer-beheading-video-story-top Apache Struts Security Flaw That Equifax Failed to Patch Responsible for Hack
Sep 15, 2017 - 00:35
Information of the breach was finally released to the public on September 7, approximately four months after the breach occurred. Krebs contacted Equifax about the issue, and the company quickly took the portal offline and launched an investigation.