Crude inventories up again, gasoline, diesel stocks down

Gladys Abbott
September 21, 2017

Crude inventories rose by 4.6 million barrels in the week ending September 15, compared with analyst expectations for an increase of 3.5 million barrels. Propane stocks decreased by 1.4 million barrels.

Futures jumped as much as 2.4% in NY.

Both reports are expected to show a build in USA crude inventories as imports resume and refineries were still restarting after a recent shutdown in the Texas Gulf Coast region due to Hurricane Harvey. Analysts at Panmure Gordon shared that the prices are now increasing since the last weeks as forecasts stated of increased demands from both the IEA and OPEC along with anticipated high demands from the the oil refineries will resume their operations after Hurricane Harvey.

He said some participants want a three or four months extension, while some think the deal needs to be extended until the end of next year. Earlier this week, Iraqi Oil Minister Jabbar al-Luaibi said he and ministers from other oil-producing nations think production should be reduced by an additional one per cent.

Crude oil prices continued to rise Wednesday despite a significant build in US oil inventories. Total volume traded was about 2 per cent above the 100-day average.

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Inventories of diesel and other distillates slid to the lowest level since 2011 while exporters shipped 5.42 million barrels of oil and fuels amid the recovery from Hurricane Harvey, the report showed.

November WTI Crude Oil settled at settled at $50.28, down $0.07 or -0.14% and December Brent Crude oil closed at $55.15, down $0.10 or -0.18%.

U.S. shale production for October is expected to rise by 79,000 barrels per day (bpd) to 6.09 million bpd, the U.S. Energy Information Administration said in a monthly report Monday.Output from the Bakken shale formation is set to rise by 7,900 bpd to 1.06 million bpd, while Eagle Ford oil output is set to fall by 9,000 bpd to 1.27 million bpd, according to the EIA's drilling productivity report.Speculators raised their net long positions in Brent futures and options by 16,962 contracts to 430,699 in the week to September 12, InterContinental Exchange (ICE) data showed, the highest level since March.

The API report also showed that gasoline inventories dropped 5.1 million barrels, and distillate inventories declined by 6.1 million barrels.

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