Sunday, 22 July 2018
Latest news
Main » US Crude Oil Inventories Have Fallen ~10.6% in 2017

US Crude Oil Inventories Have Fallen ~10.6% in 2017

01 January 2018

Earlier in the week, Brent rose to $64.65 a barrel, its highest since June 2015, and WTI rose to $57.92, its highest since July 2015.

North American crude oil prices are finally hovering near the US$60 per barrel mark - for the first time in more than two years - but most Canadian prices are nowhere even close to that level.

Besides the weekly drawdown, the EIA also said that US oil production dipped to 9.754 million barrels per day, down from 9.789 million bpd the previous week.

More news: Dirk Koetter to return as Bucs coach in 2018

In worldwide markets, Brent crude oil futures were also up, supported by ongoing supply cuts by top producers OPEC and Russian Federation.

"In the week past, strong demand for refined products, especially distillates, continued to incent refiners to process crude oil at increasing rates", said David Thompson, executive vice-president at Powerhouse, an energy-specialised commodities broker in Washington.

West Texas Intermediate, the USA benchmark, is now trading at the highest level since mid-2015, pushed above $60 a barrel by a severe cold snap in the northeastern United States that spiked demand for heating fuel.

More news: George Weah Unveils Agenda For Liberia

Specifically, slightly more than half the survey's respondents expect the rig count to continue to climb six months from now, but almost all said oil above $60 will be needed for a substantial increase. Inventories excluding the nation's strategic reserve have declined more than 11 per cent in the past year.

Trading was typically thin at year end, with many traders on vacation. The cuts started last January and are scheduled to cover all of 2018.

Oil's revival from the biggest crash in a generation persisted, with prices set for a second annual gain after weathering everything from hurricanes and Middle East conflict to the tussle between OPEC and USA shale.

More news: Trump says East Coast could use some global warming

Pipeline outages in Libya and the North Sea have also supported prices.

US Crude Oil Inventories Have Fallen ~10.6% in 2017