The London-based Energy Aspects said in a note that while it might look bullish, crude stocks still stood at 511 million barrels in the USA, 55 million barrels higher than the corresponding week in 2015.
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Distillate stockpiles, which include diesel and heating oil, rose 4.6 million barrels, the biggest weekly increase since January, putting them at their highest level on a seasonal basis in six years. Output reduction in non-cartel countries has amounted to 1.4 million bpd since 2014, while the biggest portion of reduction fell to a share of the USA, which is considered to be a locomotive for the growth of oil production in non-OPEC countries.
NEW YORK, Sept 14 (Reuters) – Oil prices fell about 3 percent for a second straight day on Wednesday, after data showing large weekly builds in USA petroleum products offset a surprise draw in crude stockpiles. Energy Information Administration data Wednesday is forecast to show supplies rose by 4 million barrels as the peak summer demand period ends. On Wednesday, officials in Tripoli announced they plan to load the first crude-oil cargo in almost two years from a major port, Ras Lanuf.
“Oil arrested a slump that had seen it fall. for two consecutive days”, said analyst Chris Todd at brokerage Love Energy, noting prices were buoyed by the USA inventory data.
“This supply-demand dynamic may not change significantly in the coming months”.
The hardest effect was on the U.S.’s output of crude oil. Commodity traders are already nervous over ballooning worldwide supply.
Renewable energy investments of $313 billion accounted for almost a fifth of total spending previous year, making renewables the largest source of power investment, the report found. According to the IEA, “The new report measures in a detailed manner the state of investment in the energy system across technologies, sectors and regions”.
Oil prices rallied on Thursday, ending a two-day skid as surging gasoline futures and short-covering supported a broad market rally. Most analysts are skeptical of a deal and think oil prices will head lower. “It may well be the case that investment will fall in 2017”, Fatih Birol, the IEA’s executive director said in an interview.
Oil markets seem to be facing headwinds on two fronts.
World oil stockpiles will continue to accumulate through 2017, a fourth consecutive year of oversupply, according to an IEA report on Tuesday.
A stronger greenback also made the dollar-denominated oil less attractive for holders of other currencies.
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The dollar has trended higher this week on speculation of a US rate hike.
