Oil prices continued to plummet on Wednesday, at times as much as 2%, after data showed large weekly builds in US petroleum products offset a surprise draw in crude stockpiles.
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Oil also edged upwards after USA industry body the American Petroleum Institute (API) reported overnight that crude reserves had risen by far less than expected last week, indicating keen demand in the world’s top crude consuming nation.
Gasoline stocks were also down 2.4 million barrels, against expectations of a 1.1-million-barrel draw.
Saudi Arabia’s crude supply dipped to 10.6 million barrels per day in August, down slightly from 10.65 million bpd in July, according to Bloomberg.
Global oil demand is now expected to grow by 1.3 million barrels per day (mb/d) in 2016, to 96.1 mb/d, from its original forecast of 1.4 mb/d growth.
“When will the world oil market return to balance?”
Libyan production has been limited in recent years by political unrest and violence, and an increase in Libyan exports would be a major oil-market development ahead of talks in Algeria in September among OPEC members to cap output.
All in all, the adjustment in the demand-supply balance anticipated by the IEA has weighed on oil prices.
In Nigeria, ExxonMobil was making preparations to load a cargo of Qua Iboe crude at the end of September, trading sources said, its first since it imposed force majeure in July.
Singapore, Sep 14 (AFP) Oil edged higher in Asia today but hopes for a sustained rebound were dashed by fresh warnings a global supply glut would persist longer than expected. As can be seen from the stochastics chart, the %K line is taking the lead ahead of the %D line in heading lower, which indicates a strengthening bearish setup.
U.S. West Texas Intermediate (WTI) crude futures CLc1 rose 73 cents, or 1.7 percent, to $44.31.
Global demand growth is slowing at a faster pace than the group initially predicted. Nationwide crude stockpiles remain more than 100 million barrels above the five-year average, government data show. In August, OPEC forecast a decline of 150,000 a day.
“If you have a big selloff one day you usually have a slight recovery the next”, said Bjarne Schieldrop, chief commodities analyst at SEB Markets.
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The agency said in its latest monthly report on Wednesday that it now expects oil stockpiles to continue accumulating through 2017, which will make the fourth consecutive year in which the world faces an oversupply of oil.
