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U.S. Oil Imports Decline; Crude Inventories tumble;

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Crude Reserves

Observing the U.S. crude reserves, they had the biggest one-week fall down since December. It happened last week as imports fell down roughly. Furthermore, inventories of refined products also declined. Helping aliment of oil prices that were down by worries about oversupply.

Crude inventories USOILC=ECI fell 5.2 million barrels in the week to May 5. EIA data showed, rather compared with expectations for a decrease of 1.8 million barrels.  Crude stocks were the lowest since February. Leveling at 522.5 million barrels.

Regarding U.S. crude imports USOICI=ECI, they dropped in previous week by 799,000 barrels per day. Which makes it the largest weekly drop since the middle of February. It came to just 6.9 million bpd. Since the beginning of March, it’s happening for the first time that they have been below 7 million bpd.

Stocks at the Cushing, Oklahoma, conveyance center for U.S. crude futures USOICC=ECI went down to 438,000 barrels.

 

OPEC; Non-OPEC

Speaking about Crude futures, they rose. Based on the data which came after overpassing weeks of pressure.. Mostly over worries that a deal between OPEC and non-OPEC producers about cutting the outputs may not have expected effect. And was not having the desired impact on market prices.

By 11:12 a.m., U.S. crude futures CLc1 were up $1.30, or 2.8 percent, at $47.18 a barrel, and Brent crude LCOc1 rose 2.5 percent, or $1.25, to $49.98 a barrel. (Reuters)

However, U.S. production went up again, and refining runs declined. This made and effect of giving the analysts a pause. They didn’t have to worry about the market’s brisk increase.

 

Forecasts

“The highlited crude oil drawdown number is doubtless supportive. However, it could act something like a shooting star.

The refinery usage-rate has come pretty down. Due to moments after topping out, a couple of weeks ago.” (John Kilduff)

Refinery crude runs USOICR=ECI were down 418,000 bpd. Their utilization rates USOIRU=ECI declined by 1.8 percentage points to 91.5 percent of overall capacity. Happening right after hitting a record 94.1 percent  in the period of three weeks earlier. This is all based on EIA data.

Gasoline stocks USOILG=ECI fell 150,000 barrels.

Distillate stockpiles USOILD=ECI, they also include diesel and heating oil. It has dropped 1.6 million barrels. In comparison with expectations for a 1.0 million-barrel draw.

Notably, U.S. crude production continued to bloom, rising to 9.31 million bpd. While only a week earlier it came from 9.29 million bpd.

 

Outputs still growing

“Growing oil output in the U.S., which achieved its highest level since August 2015, will remain a spiny sharp issue for price bulls.”  Abhishek Kumar was commenting this subject.

He is a senior energy analyst at Interfax Energy’s Global Gas Analytics in London.(Reuters)

U.S. Oil outputs are making a fuss with global Oil supplies and Oil prices. Will OPEC countries succeed in cuts and market rebalance, only time will show.

 

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Oil prices plummeting even On Wednesday, the 26th of April

Who are the winners and losers?

 

Plummeting oil prices are leading to significant revenue shortfalls in many energy exporting nations, while consumers in many importing countries are likely to have to pay less to heat their homes or drive their cars.

 

Wednesday, the 26th of April

Oil prices lower even on Wednesday. U.S. crude inventories again rose and record supplies in the rest of the world. It cast doubt over OPEC’s ability to cut output and constrict the market.


U.S. West Texas Intermediate (WTI) was trading down 4 cents at $49.52 per barrel at 0845 GMT, after gaining 0.7 percent in the previous session. The WTI price has fallen for seven of the past eight sessions.

North Sea Brent crude, the international benchmark for oil prices, eased 3 cents to $52.07 per barrel. Brent is around 8.5 percent below its April peak. (Reuters)

Market players pointed to the American Petroleum Institute’s (API) in report issued late on Tuesday, as weighing on prices. The report showed crude oil stocks rose 897,000 barrels in the week to April 21, defying expectations of a 1.7 million barrel draw. Also, it showed a huge build in gasoline stocks, unusual for this time of the year.

 

EIA

“Widespread worries over stubbornly high OECD oil stocks will be justified in what would be a setback to the global oil rebalancing process. So these figures might should be examined by the EIA.”Said an analyst.

The U.S. Energy Information Administration (EIA) will issue its inventory data at 1430 Greenwich Mean Time Today.

Both Brent and WTI prices pared losses and came close to flat after Saudi Energy Minister Khalid al-Falih said his country was interested in further talks between the Organization of the Petroleum Exporting Countries and non-OPEC producers to stabilize oil prices.

OPEC and a group of other producing countries, including Russia but excluding the United States, have pledged to cut output by 1.8 million barrels per day (bpd) during the first half of the year in order to rein in years of oversupply and prop up prices.

Yet prices have largely slumped this year as U.S. inventories remained brimming and global fuel supplies set new records, despite the pledges to cut output.

OPEC-led supply cut started at the start of the year. The average value of the Brent crude forward curve has fallen by over $5 per barrel since then. The slump in Brent is a result of record crude oil volumes in circulation on ships around the world. Despite the cuts.

Thomson Reuters Eikon shipping data showed 50 million bpd have been booked for shipment on tankers this month, up 10 percent since last December, contributing to rising stocks not just in the United States but in key markets like Japan. (Reuters)

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