Money Oil dips on rising U.S. crude inventories, plentiful global supplies

04:55  12 january  2017
04:55  12 january  2017 Source:   Reuters

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SINGAPORE Oil prices dipped on Thursday, pulled down by rising U . S . crude inventories and as markets tried to interpret U . S . President-elect Donald Trump’s surprise victory. U . S . crude stocks rose by 2.4 million barrels to 485 million barrels last week even though refineries hiked output and imports fell, the U . S . Energy Information Administration said on Wednesday. “The outcome of the U . S . election adds to the challenges for the oil exporters because it will likely lead to weaker economic growth in an already fragile global economy.

Oil rebounds on hope of shrinkage in U . S ., international supplies S&P Global Platts forecast U . S . crude supply fall of 1.7 mln bblsOil futures finish higher on Wednesday as signs that major oil producers are sticking to their agreed production cuts and bets that U . S . crude supplies API sees 4.2 million barrel rise in U . S . oil inventories : reportsThe American Petroleum Institute on Wednesday reported that U . S . crude oil inventories rose 4.2 million barrels in the latest week, news reports said. Official inventory data from the Energy Information Administration is due Thursday morning.

By Henning Gloystein

Oil prices dipped on Thursday on the back of rising U.S. crude inventories and plentiful supplies, despite emerging output cuts from OPEC and other producers.

U.S. West Texas Intermediate (WTI) crude oil futures (CLc1) were trading at $52.18 a barrel at 0141 GMT, down 7 cents from their last settlement.

Prices for Brent crude futures (LCOc1), the international benchmark for oil prices, were at $55.06 a barrel, down 4 cents.

Traders said that a crude oil inventory report published by the U.S. Energy Information Administration late on Wednesday implied ongoing oversupply as inventories unexpectedly rose by 4.1 million barrels to 483.11 million barrel.

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SINGAPORE (Reuters) - Oil prices dipped early on Thursday pulled down by rising U . S . crude inventories and as markets tried to interpret U . S . President-elect Donald Trump's surprise victory. U . S . crude stocks rose by 2.4 million barrels to 485 million barrels last week even though refineries hiked output and imports fell, the U . S . Energy Information Administration said on Wednesday. "The outcome of the U . S . election adds to the challenges for the oil exporters because it will likely lead to weaker economic growth in an already fragile global economy.

Oil Prices Rise on Tighter Supply Outlook. Oil edged higher on Wednesday on expectations that U . S . crude oil inventories are falling and on signs that oil producers are willing to stick to agreed output cuts that came into effect this week. Global oil prices slipped on Wednesday after the Energy Information Administration reported an unexpected build in last week' s crude supplies .

However, record U.S. refinery runs of 17.1 million barrels per day (bpd), up 418,000 bpd on the week, indicated strong demand, preventing bigger price falls.

"EIA data showed U.S. refineries increased the amount of crude they processed, pushing the utilisation rate to the highest since September. This saw inventories rise ... much more than the market expected," ANZ bank said.

Outside the United States, emerging detail of Saudi supply cuts as parts of efforts by the Organisation of the Petroleum Exporting Countries (OPEC) and other producers like Russia to curb the global supply glut started to emerge.

Despite some February supply reductions to China, India and Malaysia, top crude exporter Saudi Arabia is likely to focus its cuts on Europe and the United States, shielding its biggest customers in Asia.

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The U . S . Energy Information Administration on Wednesday reported a 2.4 million-barrel rise in domestic crude inventories to 485 million barrels last week. Investors are still assessing the impact of the election of Trump, whose anti-trade stance has the potential to dampen the global economy. "Any slowdown would lead to lower oil demand growth and defer a recovery in oil markets," said Paul McConnell, analyst at Wood Mackenzie.

SINGAPORE: Oil prices dipped early on Thursday pulled down by rising U . S . crude inventories and as markets tried to interpret U . S . President-elect Donald Trump's surprise victory. U . S . crude stocks rose by 2.4 million barrels to 485 million barrels last week even though refineries hiked output and imports fell, the U . S . Energy Information Administration said on Wednesday. "The outcome of the U . S . election adds to the challenges for the oil exporters because it will likely lead to weaker economic growth in an already fragile global economy.

BMI Research said that overall "compliance to the OPEC/non-OPEC oil production cut appears to be positive... (and that) we calculate compliance with production cuts at around 73 percent."

The research firm said that compliance with the planned cuts was particularly strong among members of the Gulf Cooperation Council of Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Bahrain and Oman.

Analysts noted that one aspect of the coordinated production cut which has been overlooked is that under the deal, producers have committed themselves to reducing output, not necessarily exports.

Crude oil drips from a valve at an oil well operated by Venezuela's state oil company PDVSA, in the oil rich Orinoco belt, near Morichal at the state of Monagas © REUTERS/Carlos Garcia Rawlins/File Photo Crude oil drips from a valve at an oil well operated by Venezuela's state oil company PDVSA, in the oil rich Orinoco belt, near Morichal at the state of Monagas

"The GCC countries (and Iraq) that have reportedly enacted the bulk of the production cuts are currently in the lowest domestic demand period of the year and have significant flexibility to reduce production but maintain exports," BMI said.

In another indicator that there is still plentiful supply available despite the cuts, traders are ceasing the opportunity of higher crude prices following OPEC's decision to cut output to send record volumes of 22 million barrels of surplus European and Azerbaijani oil to Asia.

(Reporting by Henning Gloystein; Editing by Joseph Radford and Kenneth Maxwell)

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Source: http://uk.pressfrom.com/news/money/-103764-oil-dips-on-rising-u-s-crude-inventories-plentiful-global-supplies/

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