EIA Reports Crude Oil Inventories Decline 6.43 million Barrels, WTI Tests Resistance

Postado Junho 11, 2017

The EIA data showed that crude inventories dropped 6.4 million barrels, more than the 4.4 million-barrel drop forecast although a smaller drawdown that industry group the American Petroleum Institute's (API) report of a fall of 8.7 million barrels.

The glut was also reflected in global markets, where benchmark Brent crude futures LCOc1 were at $52.09 per barrel, down 22 cents, or 0.3 percent.

Brent crude oil was up 40 cents at US$51.16 a barrel by 0940 GMT (5:40 a.m. ET), while USA light crude gained 40 cents to US$48.72. USA inventories fell by 8.67 MMbbl last week, the American Petroleum Institute was said to report.

The U.S. Energy Information Administration (EIA) reports U.S. petroleum stockpiles Thursday morning, one day later than usual due to the Memorial Day holiday this week.

Brent crude futures LCOc1, the global benchmark for oil prices, were at $51.30 per barrel at 0657 GMT, down 54 cents, or 1 percent, from their last close.

That compared with analyst expectations for a decrease of 2.5 million barrels.

Official government data showing weekly US crude inventories will be published on Thursday.

On Wednesday, they fell $1.53, or 3 percent, to settle at $50.31 a barrel on their last day as the front-month contract.

Ultimately, prices rather than planned cuts will rebalance the market, which will most likely require a period of flat or lower prices to curb shale growth and ensure USA output does not outstrip demand. Last year, between Memorial Day and Labor Day, the peak US driving season, inventories of reformulated gasoline fell not at all compared to the five-year average.

OPEC and non-OPEC are making slow progress despite reported high levels of compliance with output cuts implemented from the start of 2017 and recently extended to the end of March 2018.

"US oil production has grown faster at 50 Dollars than any analysts in the market predicted", Bjørnar Tonhaugen, Rystad's vice president of oil markets, said in a statement.

US crude production has also continued to increase, rising to 9.34 million bbl/d, up almost 500,000 bbl/d from a year-ago.

Libya's oil production has risen to 827,000 bpd, climbing above a three-year peak of 800,000 bpd reached earlier in May, the National Oil Corporation said, after a technical issue that hit Sharara oilfield was resolved.

Falih reiterated his country's position to do "whatever it takes" along with Russian Federation to help stabilize the oil market, signalling an open-ended policy to reduce the inventory overhang and balance the market.

Oil price is struggling to gain grounds despite the OPEC and N-OPEC agreement on production deals.