West Texas Intermediate crude oil was up 0.4% to $42.92 a barrel on Tuesday.
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The Energy Information Administration said domestic oil production should be relatively flat from October through July of 2017 and average about 8.4 million barrels per day.
This was cushioned somewhat by gasoline and distillate stocks, which fell by 2.8m barrels and 2m barrels respectively.
Gasoline inventories declined 1.2 per cent to 235.4 million barrels. Crude supplies rose 1.1 million barrels. This rise, according to the API, was accompanied by a 3.9-million-barrel reduction in gasoline inventories and a 1.5-million-barrel draw in distillate stockpiles. The EIA also reported that USA gasoline stocks fell 2.8 million barrels last week, which is the second-largest weekly draw for gasoline since mid-April.
The Brent Oil has decreased significantly in this afternoon, the price was weakened by the United States Crude Oil Inventories, which have come much better than the specialist’s prediction, I’ve said in my yesterday’s analyze that the rate will decrease sharply if the Crude Levels will come better.
Markets had bet on a decrease of 1.300 million barrels. Prices are forecast by the EIA to rise incrementally throughout the rest of the year into 2017, the agency said.
“High gasoline production is leading to motor fuel inventories that are the highest on record for this time of year, which is helping to keep prices down at the pump”, EIA Administrator Adam Sieminski said in a statement.
There is still plenty of downside risk to consider concerning oil prices – particularly from the supply side, but any slightly positive data points could potentially move oil prices upward – off of massive short-covering by these same speculators. As Saudi Arabia, Iraq and Iran increasingly vie for market share, it appears there will be no let-up in each nation’s crude output.
USA crude fell 2 percent to $41.90 per barrel, while benchmark Brent dropped 1.8 percent to $44.16 a barrel.
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Certain OPEC members, namely Venezuela, have been talking up the possibility of a coordinated freeze coming out of proposed talks on the sidelines of an oil conference that’s taking place in September in Algeria. All comments are subject to editorial review.
