Oil Halts Slide Near $48 on Signs US Stockpiles Extended Drop

Posted August 17, 2017

West Texas Intermediate futures for September delivery traded down 65 cents, or 1.4%, to $46.90 US per barrel.

US crude oil inventories fell for the seventh consecutive week in their largest drawdown in almost a year while exports and production continued to rise, the Energy Information Administration said on Wednesday.

Crude stocks at the Cushing, Oklahoma, delivery hub for US crude futures rose 678,000 barrels, EIA said.

Oil futures rebounded slightly on Thursday, a day after heavy selling that came on the back of data showing US oil production has jumped to an over two-year high. Inventories dropped by 9.2 million barrels last week, the American Petroleum Institute was said to report.

Traders said that reports of a dip in Libyan output to between 130,000 and 150,000 barrels per day (bpd), down from 280,000 bpd, had supported Brent.

WTI Crude Oil (Light Sweet) price at NYME–• Stock Exchange down by 1.74% to $46.91 per barrel.

Gasoline inventories were unchanged on the week with a 0.7% annual decline while distillate recorded a build of 0.7 million barrels with a year-on-year decline of 3.1%.

Domestic crude production recorded a gain of 0.8% on the week at 9.50mn bpd and there was an increase of 10.5% over the year. Crude oil exports also rose, jumping to 877,000 bbl/d from 707,000 bbl/d.

Opec will not clear the global glut any time soon since any increase in price continues to bolster rival production from USA shale, according to the International Energy Agency.

"If we see these draws past Labor Day, it will drive the market, possibly past $50", he said.