Crude Oil Mostly Steady In Asia After API Estimates, Risks Monitored

Crude Oil Mostly Steady In Asia After API Estimates, Risks Monitored

Crude Oil Mostly Steady In Asia After API Estimates, Risks Monitored

However, gasoline stocks rose 6.8 million bbl, more than triple expectations.

US crude on Wednesday slid almost 3 percent on Wednesday, its biggest daily decline in more than two months, after a sharp rise in USA inventories of refined fuel suggested demand may be flagging, while USA crude production hit another weekly record.

According to the source, the price for January Futures WTI oil increased by 0,19%, totalling to $57,58 per barrel on the New York Mercantile Exchange (NYMEX).

Information released Wednesday by the Energy Information Administration showed US crude oil inventories decreased by 5.6 million barrels last week.

"A solid draw to crude inventories amid higher refinery runs-hark, almost 800,000 [barrels per day] above year-ago levels-has been offset by a whopper of a build to gasoline inventories", said Matt Smith, director of commodity research at ClipperData. They are now 9.1 million barrels below their level during the same week in 2015, but "they are still more than 100 million barrels above their level from the same week during 2014", said Jenna Delaney, senior oil analyst at S&P Global Platts.

Higher Oil Prices Widen US Trade Deficit
World trade flows have grown this year, as global economies are growing in sync and at almost the best paces since the recession. The U.S. imported more barrels of crude oil in October compared with the prior month, and at a higher average price.

But the report showed that product inventories increased, with gasoline up 6.8 million barrels to 220.9 million, 3.8 percent below last year's level, and distillates up 1.7 million barrels to 129.4 million, a year-on-year decline of 17.4 percent.

Distillate inventories, too, saw a build this week, up 4.259 million barrels, against a forecast of a 548,000-barrel build. The United States added six rigs, four natural gas-directed and two oil-directed to finish the week at 929 active units, as against 597 a year ago.

On paper the report was mixed with the crude oil number bullish and the fuel numbers bearish.

USA crude production continued to edge higher, with total domestic output at about 9.7 million barrels a day last week, up 25,000 barrels a day, according to the EIA.

Meanwhile, analysts said investors tended to take profit after oil prices posted solid gains in the previous session.

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