Oil prices decline amid rising U.S. inventories

Oil prices decline amid rising U.S. inventories

USA crude stocks rose last week as imports jumped, while gasoline stocks decreased and distillate inventories rose, the Energy Information Administration said on Wednesday.

OPEC's overall output jumped by 300,000 barrels a day last month, according to a Bloomberg survey, as the cartel offset losses from an economic collapse in Venezuela, political clashes in Libya and an expectation that Iranian exports will drop due to US sanctions.

Furthermore, Weekly Distillate Stocks rose by 2.983 million barrels and Gasoline inventories dropped by 2.536 million barrels, coming in above prior surveys. The actual record was a build that surprised the market.

Stocks at the key Cushing storage hub in Oklahoma fell by 1.3-million barrels, the lowest level since October 2014, according to data from the Energy Information Administration (EIA).

Oil prices are feeling the effects of ongoing tensions over global trade, with markets concerned about any slowdown in growth around the world.

Higher crude output from the Saudis, along with Nigeria and Iraq, pushed up total production from the Organisation of Petroleum Exporting Countries by 300,000bpd, offsetting losses from a spiraling economic collapse in Venezuela, political clashes in Libya and the onset of U.S. sanctions against Iran. "In turn, for every 1 million barrels per day imbalance, we see a price impact on Brent of around $17", they added.

Ray Lewis Inducted Into Pro Football Hall Of Fame
He also set the single-season record with 23 touchdown catches in 2007 while with New England. "For them to show up.it was heart-warming", he said .

Net U.S. crude imports rose last week by 1.4 million barrels per day.

Brent crude futures fell US$1.82 to settle at US$72.39 a barrel, a 2.5 per cent loss. Iranian officials have warned the country would not easily yield to a renewed USA campaign to strangle Iran's vital oil exports. China's Unipec, the trading arm of state oil major Sinopec, has suspended crude oil imports from the United States due to a growing trade spat between Washington and Beijing, three sources familiar with the situation said on Friday.

Total motor gasoline inventories decreased by 2.5 million barrels last week, but still about 1.4 percent above the levels of the same week previous year.

The producer group on June 23 agreed with Russian Federation and nine other allies on a one million bpd output increase to head off any supply shortages emerging from U.S. sanctions on Iran and Venezuela's continued decline, among other market disruptions. The number of working oil wells in the country increased that month by more than 2 percent from a year before. Total volume traded was about 30 percent below the 100-day average.

On Tuesday, the EIA reported that US crude production fell 30,000 barrels per day to 10.44 million bpd in May.

But overall US crude oil inventories actually rose by 3.8 million barrels last week to 408.74 million barrels C-STK-T-EIA , the EIA data showed.

Related Articles

  • Feeling sidelined, Israel’s Druze protest Jewish nation bill

    Feeling sidelined, Israel’s Druze protest Jewish nation bill

    Male members of the Druze community consistently serve in the military, in keeping with the sect's values of loyalty to the state. They support the state of Israel, are active in parliament and, crucially, serve in the Israeli army.
    Vintage World War II plane crashes in Switzerland, 20 feared dead

    Vintage World War II plane crashes in Switzerland, 20 feared dead

    Daniel Knech of the Swiss safety investigation service SESE said the crew did not have time to send out a distress signal. There are now no details on casualties but the Ju-52 can carry up to 17 passengers, two passengers and a flght attendant.
    Trump renews government shutdown threat if no border wall funding

    Trump renews government shutdown threat if no border wall funding

    The $5 billion is well above the $1.6 billion in the Senate version of a bill funding the Department of Homeland Security. McConnell canceled most of his chamber's recess to give senators time to work on the annual spending bills.
  • Johnson, Dillashaw favourites to defend titles on UFC 227 odds

    Johnson, Dillashaw favourites to defend titles on UFC 227 odds

    He now trains out of Los Angeles. "America is all about winners and the victor of this next fight, I want to fight that guy". After the result, Dillashaw welcomed a challenge by newly crowned flyweight champion Henry Cejudo .
    Chelsea’s Courtois wants Madrid move for family reasons, says agent

    Chelsea’s Courtois wants Madrid move for family reasons, says agent

    Should Courtois depart next week, Chelsea would have limited time in which to bring in a replacement. Henrotay cleared the doubt of the supporters that there is more than only financial reason.
    Prince Harry's dropped the biggest clue that Meghan Markle may be pregnant

    Prince Harry's dropped the biggest clue that Meghan Markle may be pregnant

    It only had one previous owner (Harry), per the listing, and a mere 4,464 miles on the odometer; it's practically brand new. Prince Harry was joined by his wife Meghan today as he attended his best friend's wedding in Surrey today.
  • More than 100 escaped goats descend on Boise neighborhood

    More than 100 escaped goats descend on Boise neighborhood

    From yard to yard, the goats ate every bit of foliage and greenery they could, destroying gardens like a plague of locusts. None of the residents have filed a complaint about the situation, Schellhaas said, and nobody was cited for the incident.
    China Rejects US Request to Cut Iran Oil Imports

    China Rejects US Request to Cut Iran Oil Imports

    If the US wants negotiations, it should stop pressures and sanctions, Qasemi was quoted as saying by official IRNA news agency. It accounted for 35 percent the Iranian exports last month, according to ship-tracking data compiled by Bloomberg .
    Community Shield: Sarri's Chelsea value to beat ill-prepared City

    Community Shield: Sarri's Chelsea value to beat ill-prepared City

    I'm going to learn a lot to see him every weekend", said Guardiola ahead of Sunday's traditional curtain-raiser at Wembley. "But Barcelona, for me the best team in the world at playing football, won their first in 1992".
  • Hot, Dusty and on Fire: Portugal's Heatwave Breaks Records

    Hot, Dusty and on Fire: Portugal's Heatwave Breaks Records

    But it was not just Portugal where the heat was keenly felt, with the mercury hitting 46.6C (115.9F) in neighbouring Spain. The nuclear power plants use the water to cool down their reactors before sending the water back into the rivers.
    Rose pulls out of WGC-Bridgestone

    Rose pulls out of WGC-Bridgestone

    My middle-tier pick this week is Tony Finau, and it honestly shocks me to say "middle-tier" and "Tony Finau" in the same sentence. He could probably take two, three weeks off and he's going to get it around here fine, because he knows how to.
    Man Utd boss Mourinho won't suffer third season crisis - Big Sam

    Man Utd boss Mourinho won't suffer third season crisis - Big Sam

    United face European champions Real Madrid in the International Champions Cup tomorrow at the Hard Rock Stadium in Florida. Instead, the 55-year-old hit out at his youth players and excused Alexis Sanchez for looking moody against Liverpool.