United States crude stocks up, gasoline, distillate supply drops

United States crude stocks up, gasoline, distillate supply drops

The result, says Marshall, has been a decline in global crude inventories, which has contributed to higher oil prices.

Rising output, as well as seasonally low demand, mean that USA crude inventories rose by 1.2 million barrels in the week to March 9, to 428 million barrels, the American Petroleum Institute said on Tuesday.

US oil production C-OUT-T-EIA is expected to top 11 million bpd later this year. This week, the API reported a draw of 1.262 million in gasoline stockpiles, largely in line with the 1.176-million-barrel draw that analysts had expected.

"Commercial crude stocks in the United States have been recovering and are at their highest level since December 2017".

As it had done in several consecutive monthly reports, OPEC lifted again on Wednesday its estimates for non-OPEC oil supply growth this year, but this time the cartel's estimates that for the first time, rival oil supply growth led by the USA will outpace global oil demand growth in 2018.

Crude oil prices have fallen in the last 24 hours.

Brent crude was last up eight cents at $64.72 USA a barrel, climbing from an earlier low of $64.43. "We continue to just chop around here", said Gene McGillian, manager of market research at Tradition Energy.

If sanctions are reinstated, Iran's oil exports could drop by 250 000 to 500 000 barrels a day by the end of this year, FGE said in a note. Looking at reactions in markets, crude oil prices fell following the EIA report.

Oil prices have firmed since oil cartel OPEC's November 2016 agreement to cut oil production by 1.2 million barrels per day (bpd), while non-OPEC members, led by Russian Federation, agreed to reduce output by 558,000 bpd.

Tran told Bloomberg, "we do think over the course of the year oil prices will likely march to the beat of its own drum - so from that perspective we do believe the backdrop for the oil market is actually looking quite constructive".

Support on Wednesday came from a report that US crude inventories are not rising as much as expected during the spring season that is starting, implying healthy demand.

Brent crude has fallen by around 1 percent so far this week, as traders and investors have grown increasingly doubtful that coordinated supply cuts by OPEC and some of its partners might not be enough to offset the relentless rise in US crude production.

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