Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 2-Oil prices dip as U.S. stockpile rise takes shine off OPEC higher demand view

Published 13/09/2017, 04:56 pm
© Reuters.  UPDATE 2-Oil prices dip as U.S. stockpile rise takes shine off OPEC higher demand view
LCO
-
CL
-

* WTI unchanged after stockpile rise in U.S.

* But Brent falls 0.2 percent

* Spread between WTI and Brent rises (Updates prices)

By Aaron Sheldrick

TOKYO, Sept 13 (Reuters) - Oil prices eased on Wednesday, dampened by reports of rising U.S. crude stockpiles, but retaining some of the gains made in in the previous session after OPEC said it expected higher demand for its crude next year.

U.S. West Texas Intermediate (WTI) CLc1 was down 5 cents, or 0.1 percent, at $48.18 a barrel at 0650 GMT after rising earlier in the day. The contract rose 0.3 percent on Tuesday.

International benchmark Brent crude LCOc1 was down 11 cents, or 0.2 percent, at $54.16 a barrel, having settled up 0.8 percent in the previous session.

The difference between Brent and WTI, WTCLc1-LCOc1 known as the spread, was at $5.46 in the favour of the global benchmark, as Hurricanes Harvey and Irma continued to impact demand for both crude and oil products in the U.S.

"The market is still trying to assess ... the positioning on Brent and the positioning on WTI and that's reflected in the price spread," said Virendra Chauhan, oil analyst at Energy Aspects in Singapore.

Wednesday's drop came after a rise the day before when the Organization of Petroleum Exporting Countries (OPEC) forecast higher demand for its oil in 2018 and pointed to signs of a tighter global market, indicating its production-cutting deal with non-member countries is helping to tackle a supply glut that has weighed on prices. have warned current U.S. stocks data may not give a full picture in coming weeks because of weather disruption, but industry group the American Petroleum Institute reported late on Tuesday that U.S. crude stockpiles rose nearly twice expected levels last week. Refineries cut output following Hurricane Harvey, while gasoline and distillate inventories fell. API/S

Crude inventories rose by 6.2 million barrels in the week to Sept. 8 to 468.8 million, nearly double analysts' expectations of an increase of 3.2 million barrels.

The U.S. Department of Energy's Energy Information Administration (EIA) reports on stockpiles and refinery runs later on Wednesday. EIA/S

The EIA also said on Tuesday it had revised both its 2017 and 2018 oil production forecast figures lower to reflect, in part, the effects of Hurricane Harvey. largest refinery in the United States, in Port Arthur Texas, was running at reduced rates, sources told Reuters. CHART: U.S. oil may rise to $48.92

http://tmsnrt.rs/2jmKT6J CHART: Brent oil may retest resistance at $54.68

http://tmsnrt.rs/2f4A3RD

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.