Oil Slips as US Gasoline Stockpiles Climb, Crude Supplies Drop

The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 1.0 million barrels in the week ended April 14.

Gasoline stocks posted a counter-seasonal build of 1.5 million barrels, despite heavier refining activity.

On the NYME, the May delivery for West Texas Intermediate dropped by 24 cents to reach $52.41 per barrel.

Traders opined that oil prices gained support as OPEC's secretary general assured that the oil cartel is committed to rebalance market stability by bringing down crude stocks down across the globe to the industry's five-year average.

At a time when OPEC and other producing nations have been trying to cut output, government drilling data showed USA shale production next month was set to rise to 5.19 million barrels per day (bpd).

Crude traders and investors in Asia also had their first chance to assess a 13th consecutive increase in the rig count by drillers of USA shale oil.

Oil prices extended losses Wednesday as official data showed the first weekly climb in USA gasoline supplies in two months. Gasoline consumption also declined by about 1 percent to 9.3 million barrels. While the OPEC and other countries remain compliant with the deal, the production in the United States has increased by more than half a million barrels per day. Prices fell even after Saudi Arabian Oil Co.

Price of the Brent crude oil at the London ICE (Intercontinental Exchange Futures) fell $0.16 to trade at $54.73.

He said "conformity" within OPEC and other producers was improving and that the UAE was complying 100 per cent with its pledge to cut production. The drop in production resulted in a marginal increase of 38.5 million barrels for the first quarter of the year.

China's March gasoline output rose 2.5 percent year on year to 11.24 million tonnes, the highest level since at least April 2014, data from China's National Bureau of Statistics showed on Wednesday, adding fuel into an Asian market that is already well supplied.

Oil traders continued to focus on the ongoing rebound in USA shale production, which could derail efforts by other major producers to rebalance global oil supply and demand remained in focus.

US inventories now sit at 532.3 million barrels, only down about 3 million units from the record reached in March.

Share

Related News

  • Obama Takes $400K Fee To Speak At Investment Bank's Conference

    Obama Takes $400K Fee To Speak At Investment Bank's Conference

    Mr Obama gives off an impression of being getting a charge out of life after the White House since he exited office in January. In an interview in 2009, Obama said: " I did not run for office to be helping out a bunch of fat cat bankers on Wall Street ".
    Jeff Goldblum cast in 'Jurassic World' sequel

    Jeff Goldblum cast in 'Jurassic World' sequel

    Hit the jump for more details on the Jeff Goldblum Jurassic World 2 casting. "They're doing spectacularly well without me". Ian Malcolm would go back to Jurassic Park , Jurassic World, or Jurassic just-about-anything.
    AAP pays tribute to CRPF troopers killed in Maoist attack

    AAP pays tribute to CRPF troopers killed in Maoist attack

    Survivors of the Naxal attack said that there were almost 300 rebels, including women cadres. The minister said everyone should come together and condemn the Maoist philosophy.
  • Ivanka Trump hears groans as she defends father in Berlin

    Ivanka Trump talks to a trainee when visiting the Siemens Technik Akademie after she participated in the W20 Summit in Berlin, Germany .
    Illegal Pot Use Is Rising in States That Have Legalized Medical Marijuana

    Illegal Pot Use Is Rising in States That Have Legalized Medical Marijuana

    The study notes some limitations. "The impact could be very different in different places due to the implementation of the laws". Most recent research has concluded that marijuana legalization laws do not prompt an increase in use of the drug by teens.

    Bills opt not to match Pats' offer for Mike Gillislee

    Just a year ago the Patriots signed Chris Hogan to a three-year, $12 million offer sheet which the Bills declined to match. Gilmore spent his first five seasons in Buffalo but was allowed to enter free agency after the 2016 season.
  • Bell Helicopter teams with Uber to create flying electric taxis

    Bell Helicopter teams with Uber to create flying electric taxis

    And Chargepoint , the largest operator of electric-vehicle charging stations, will figure out how to top off the batteries. Uber hopes to debut its network of flying cars at the 2020 World Expo in Dubai and have "full-scale operations by 2023".

    AT&T Rising: Q1 Rev Misses, Year Profit Growth View Tops Consensus

    The company is no longer providing consolidated revenue guidance primarily due to the unpredictability of wireless handset sales. The company expects to see EPS growth in the mid-single-digit range, with free cash flow in the $18 billion range.
    LVMH to consolidate hold on Dior in multibillion-euro deal

    LVMH to consolidate hold on Dior in multibillion-euro deal

    The bid will take the form of a cash offer of 172 euros per share, plus 0.192 shares in Hermes International, the statement said. Last year, revenues amounted to more than two billion euros and it booked underlying or operating profit of 270 million euros.
  • Marissa Mayer Is Leaving Yahoo with an Insane Amount of Money

    Marissa Mayer Is Leaving Yahoo with an Insane Amount of Money

    Mayer has about $84 million in stock options and $25 million in restricted stock units, according to the Monday filing. That figure included a $20 million estimate of the value of restricted stock units, as well as $3.02 million in cash.
    Larry Bird makes bid for Indianapolis to host 2021 NBA All-Star Game

    Larry Bird makes bid for Indianapolis to host 2021 NBA All-Star Game

    The Sixers have plenty of draft picks that would be ideal for a team looking to rebuild to get a hold of. Johnson, in particular, has hinted that he might be interested in acquiring Paul George this offseason.
    Latest Leaked Pictures Show iPhone With Edge-To-Edge

    Latest Leaked Pictures Show iPhone With Edge-To-Edge

    Most customers who want the new iPhone will simply buy it when it is finally available even if that means early 2018. The new model is expected to omit the home button in favor of a Function Area, reported MacRumors .