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US Gasoline Inventories Add More Pain to Crude Oil Futures

World oil prices up

The oil prices were trading higher after a sluggish and a lackluster performance on the previous trading session.

According to recent reports, the on-going oil inventories glut problem has been pulling down the oil prices in the past weeks managed to steady and lowered down today.

Meanwhile, gasoline inventories in the US rose sharply for the week of 6.78 million barrels, while experts expected increase of 2.7 million barrels. The motor fuel inventories were also rising and were also pulling the prices up after succeeding lackluster performance.

Oil prices came under pressure on Tuesday when the Organisation of Economic Cooperation and Development said inflation moved lower for the world's major industrialised economies.

Furthermore, oil prices yesterday were down and stumbled on its worst day for over two months.

U.S. oil production last week surpassed the high water mark of this century, and may be the highest since the early 1980s or 1970s at 9.7 million barrels of crude produced each day last week.

Overall futures were steady and were changed by incremental figures after sinking last Wednesday by a whopping2.9%.

The cost of the February futures for Brent crude on the London ICE Futures exchange to 13:30 kV rose $0.35 (0.57 percent) to $61.57 per barrel. Total volume traded was about 42 percent below the 100-day average.

Traders said prices fell after an American Petroleum Institute report on Tuesday showed a 9.2-million-barrel rise in gasoline stocks in the week ended December 1 and an increase of 4.3 million barrels in distillate inventories, which include motor diesel and heating oil.

One factor that could undermine OPEC's and Russia's effort to cut supplies and prop up prices is U.S. oil production, which has risen by 15% since mid-2016 to 9.68 million barrels per day, close to levels of top producers Russian Federation and Saudi Arabia. The experts surveyed now expect Brent Crude to average $58.84 a barrel next year, compared to a forecast of $55.71 per barrel for 2018 in the previous Reuters poll conducted at the end of October.