Crude Oil Mostly Steady In Asia After API Estimates, Risks Monitored

Marcus Newton
December 7, 2017

Oil prices dipped on Wednesday, as refined product inventories in the United States rose in what the market interpreted as a sign of lacklustre demand.

US gasoline stocks rose by 6.8 million barrels and distillate inventories were up 1.7 million barrels, government data showed, both exceeding expectations in a Reuters poll.

The price for January Futures Brent oil grew by 0,11% to stand at $62,52 per barrel on the London ICE Futures Exchange.

Futures erased Tuesday's gains in NY after the American Petroleum Institute was said to report gasoline stockpiles in the world's largest economy surged by 9.2 million barrels last week, Bloomberg said. Unprecedented flooding from the Category 4 storm that slammed into the state's coast last week, sending gasoline prices surging as oil refineries shut, may also set a record for rainfall in the contiguous USA, the weather service said Tuesday.

U.S. West Texas Intermediate crude futures settled down $1.66, or 2.9 percent, to $55.96 a barrel.

USA commercial crude stocks fell by 5.6 million barrels last week, while gasoline inventories gained 6.8 million barrels. A Bloomberg survey put the decline at 2.5 million barrels.

More news: Now, PM welcomes Sunni Waqf Board statement 'disowning' Sibal
More news: Tag: Honor 7X India
More news: Mega Man 11 Set for Multi-Platform 2018 Release

On paper the report was mixed with the crude oil number bullish and the fuel numbers bearish.

USA output rose in September to 9.5 million barrels per day (bpd), the highest monthly output since 2015, the EIA said last week.

Oil prices plummeted today, witnessing a free fall as weak equities clubbed with persistent profit selling pressure after recent gains hurt the sentiments.

"With U.S. production, we're still in the throes of seeing that go ever higher".

Meanwhile, one of the world's best-known oil traders, Pierre Andurand, who runs a big hedge fund specializing in black gold, Andurand Capital, says rising demand will again be a factor. He is now striking a remarkably upbeat tone (http://www.marketwatch.com/story/trader-who-predicted-oil-under-30-says-prices-could-rally-to-100-2017-12-06) on the commodity.

Other reports by MaliBehiribAe

Discuss This Article

FOLLOW OUR NEWSPAPER