USA crude oil inventories rose for a sixth straight week as domestic production increased, outweighing a drop in imports to the lowest level since 1991, data from the Energy Information Administration showed on Wednesday.
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Oil ministers from the Organization of Petroleum Exporting Countries need until next month to decide if the rebound is for real, and if it’s not, any production cuts shouldn’t fall only on OPEC’s shoulders, Ali Al-Omair said in an interview in Riyadh on Wednesday.
The report sees only a gentle recovery over the next few years in oil prices LCOc1 , which have more than halved to $50 a barrel since June 2014 due to plentiful supply.
“The resulting range for OPEC crude in 2040 amounts to 9.4 million bpd, which highlights the challenges for member countries’ long-term investment decisions”. The volume of all futures traded was 6.4 per cent above the 100-day average.
American crude and fuel imports fell last week, continuing a decade-long trend. Oil prices edged up in Asia Thursday, lifted by bargain-hunting following a sharp decline the day before, although analysts said the market remains hobbled by an oversupply of the commodity.
“Refiners are coming out of maintenance as quickly as possible, which is going to boost crude demand”, Phil Flynn, senior market analyst at the Price Futures Group in Chicago, said by phone. “With the USA dollar strong on us, there are serious headwinds for crude”. “If the situation is as it is then the only parameter will be the withdrawal of the high-cost production”.
Nymex reformulated gasoline blendstock for December -the benchmark gasoline contract-rose 16 points to $1.4471 a gallon, while December diesel traded at $1.5659, 1 point lower. Major oil producers such as Saudi Arabia and Russian Federation have continued to produce at a high pace in a bid to defend and extend their market share. As the argument goes, strong refined product demand will eventually lead to increased refinery utility leading to increased draws from crude oil storage to meet demand.
“Here we are, mired in the $40 levels, while production ticks higher and inventories stand at over 100 million barrels higher than this time a year ago”.
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“Demand in China is not changing because of slower economic growth”, the delegate said, adding that oil demand in the United States may continue to grow next year.
