USA oil stockpiles grow 4.6 million barrels

Posted September 21, 2017

In the previous week, crude stocks climbed 5.9 million barrels, but gasoline inventories plunged by 8.4 million barrels. USA gasoline inventories shrank last week to a level not seen since November 2015 and distillate stockpiles slid by the most since 2011, the Energy Information Administration said.

Gasoline inventories fell by 2.1 million barrels and distillate fuels, which include diesel and heating oil, dropped by 5.7 million barrels.

"If I look at this week's EIA data, post hurricane. the refined products drawdown implies that refineries are not yet back to normal", he said. The contract stated a weekly rise of 5.1 percent with its strongest form in almost two months.

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This was despite Iraq's oil minister saying earlier today that his country's oil production was now at 4.32 million barrels per day (bpd), down from nearly 4.5 million bpd in May and June, Reuters noted, and other data showing that Saudi Arabia's crude exports fell to 6.693 million bpd in July, down from 6.889 million bpd in June.

U.S. crude oil stockpiles jumped last week as imports and production increased, the U.S. Energy Information Administration said, as operations resumed from the impact of Hurricane Harvey which hit the Gulf Coast on August 25.

The US benchmark West Texas Intermediate for October delivery, which expired Wednesday (Thursday AEST), rose 93 cents to settle at $US50.41 a barrel on the New York Mercantile Exchange.

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"The impact of Hurricane Harvey can still be seen in today's larger-than-expected build in the US commercial crude stockpile", said Abhishek Kumar, Senior Energy Analyst at Interfax Energy's Global Gas Analytics in London.

Despite major Middle Eastern oil producers insisting that they are reducing supplies in a bid to support oil prices, an excess supply is still expected to put a dampener on the market. The more-active November futures contract climbed 95 cents to $50.85. It's "another sign that the refining demand is going to be very strong".

Brent for November settlement advanced $US1.15 to end the session at $US56.29 a barrel on the London-based ICE Futures Europe exchange, the highest level since March.

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