OPEC says it will cut production but is not doing that, and are going to see who can stand lower prices longest, since October of 2014 HeffX-LTN sees that Crude Oil is likely is headed for 20 – 22 bbl in the mid term.
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On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $47.82 a barrel, down $0.09 in the Globex electronic session. The Department of Energy’s (DoE) statistical arm reported an 8.03 million barrels increase in USA crude inventories for the earlier week.
Production fell after crude exports halted at the port of Zueitina, Mohamed Elharari, a spokesman for the National Oil Corp.’s management in the western city of Tripoli, said Wednesday by phone. The US Energy Information Administration will release its official data later on Wednesday and analysts polled by The Wall Street Journal expect an increase of 2.5 million barrels.
Distillate stockpiles, which include diesel and heating oil, fell by 1.3 million barrels, versus expectations for a 1.8-million-barrel drop, the EIA data showed.
Futures were little changed in New York after advancing 3.8 percent Tuesday.
The rebound, after a 1 percent drop in crude prices on Tuesday, came ahead of industry group American Petroleum Institute’s (API) data on USA oil inventories, which were expected to a build in crude stockpiles.
Brent for December settlement fell as much as 40 cents to US$50.14 a barrel on the London-based ICE Futures Europe exchange.
Crude oil prices lost a few momentum in early Wednesday trading, after a rally sparked in part by labor strikes in the Brazilian oil sector. Utilization rate +1.2% to 87.6%.
A global economic slowdown led by China has hammered demand for the commodity and highlighted fears there may not be enough economic activity to soak up excess supplies, as output from oil-producing nations remains high.
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Nigeria’s NNPC said late on Tuesday it had cancelled bidding for new crude oil swap agreements and will instead directly sell crude oil to refiners, and purchase refined oil products from them. Output is down about 500,000 barrels a day from the 9.61 million reached in June, the most since 1972.
