USA crude stockpiles fall the most in almost a year

USA crude stockpiles fall the most in almost a year

Light sweet crude oil (WTI) futures lost 0.77 dollar or 1.62 percent to close at USD 46.78 a barrel at the New York-based commodity exchange NYMEX.

United States production reached just over 9.5 million barrels a day last week, an increase of around 100,000 barrels per day on the prior week and the strongest level since the middle of 2015. October Brent crude on London's ICE Futures rose 0.5% to $50.52. In July 2017, OPEC oil production rose to ~32.9 million barrels per day above the pledged output level of 32.5 million barrels per day.

Oil traded little changed after government data showed US crude supplies fell by the most since September, yet gasoline and Cushing, Oklahoma stockpiles increased last week.

Gasoline inventories rose by 301,000 barrels for the week ending August 11, compared to analyst expectations that inventories for the fuel would fall by 1.5 million barrels.

USA crude output rose by 79,000 bpd last week to 9.5 MMbopd, the EIA reported.

But U.S. oil output is rising fast as shale producers take advantage of a recent increase in prices.

Distillate stockpiles, which include diesel and heating oil, rose 702,000 bbl, vs. expectations for a drop of 572,000 bbl, the EIA data showed.

William O'Loughlin at Rivkin Securities said that if inventory declines continued at the current pace, USA stocks would fall below the five-year average in two months.

Oil futures struggled for direction on Thursday, a day after heavy selling that came on the back of data showing USA oil production has jumped to an over two-year high.

"If we see these draws past Labor Day, it will drive the market, possibly past $50".



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