Breaking News
0

U.S. crude slips on inventory build, gasoline rallies

CommoditiesOct 25, 2017 03:52PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO - A general view of a crude oil importing port in Qingdao

By David Gaffen

NEW YORK (Reuters) - U.S. oil prices slipped on Wednesday after a surprising increase in U.S. crude inventories, while U.S. gasoline futures rallied 1 percent on a sharp falloff in inventories.

Brent crude edged up after top exporter Saudi Arabia reiterated its determination to end a three-year supply glut.

The deep draw in gasoline inventories came even as refining output rose, according to data from the U.S. Energy Information Administration. This suggested demand remained strong after the peak U.S. driving season.

Crude inventories rose by 856,000 barrels in the week to Oct. 20, the EIA said. Analysts had expected a decrease of 2.6 million barrels. Production rebounded from a falloff due to Hurricane Nate, and imports rose.

Brent crude futures settled up 11 cents at $58.44 a barrel. U.S. West Texas Intermediate crude dropped 29 cents to $52.18.

The EIA data showed gasoline and distillate inventories both fell by more than 5 million barrels, and refinery utilization rates rose 3.3 percentage points.

RBOB futures rose 1.1 percent to $1.7341 a gallon. Heating oil futures got a brief boost but settled slightly lower.

"Demand has been a little stronger than some people might have anticipated as we pushed out of the driving season, and that's where today's strength is coming from," said Gene McGillian, manager of research at Tradition Energy in Stamford, Conn.

On Tuesday, Saudi Arabian Energy Minister Khalid al-Falih on Tuesday raised the prospect of prolonged output restraint even after the end of an OPEC-led pact to cut supplies.

Even as global inventory levels are falling, Brent has remained below $60 a barrel, partly on concern the crude glut may grow again after March 2018, when the output reduction deal is due to end.

The Organization of the Petroleum Exporting Countries, Russia and other producers have cut oil output by about 1.8 million barrels per day (bpd). OPEC's next meeting is on Nov. 7 in Vienna, Austria, when they will consider extending the deal.

While other producers cut output, U.S. production rebounded to 9.5 million bpd in the latest week. U.S. crude exports have averaged 1.7 million barrels a day over the past four weeks, the highest ever.

"Saudi Arabia's determination to rebalance the market, together with ongoing geopolitical tensions in the Middle East, will remain supportive of oil prices," said Abhishek Kumar, senior energy analyst at Interfax Energy’s Global Gas Analytics in London.

"However, rising oil production in the U.S. and persistently high exports from the country will be the key bearish factors."

Disruptions to exports from Iraq, OPEC's second-largest producer, have supported oil. Kurdish authorities on Wednesday offered to suspend their independence drive, but Baghdad said it would continue its offensive to retake Kurdish territory.

U.S. crude slips on inventory build, gasoline rallies
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email