10.2 C
New York
Friday, March 31, 2023

Oil firm on falling U.S. fuel inventories, but record output drags on prices

Oil firm on falling U.S. fuel inventories, but record output drags on prices© Reuters. Oil pumps are seen at sunset outside Vaudoy-en-Brie

By Henning Gloystein

SINGAPORE (Reuters) – U.S. oil prices were firm on Thursday amid a fall in U.S. inventories and as OPEC cuts supply, but record output of 12.1 million barrels per day (bpd) prevented prices rising further.

U.S. West Texas Intermediate (WTI) crude oil futures were at $57.01 per barrel at 0034 GMT, up 7 cents from their last settlement.

International futures had yet to trade.

Crude prices rose by around 2 percent the previous session.

After five consecutive weekly builds, nationwide U.S. crude inventories fell 8.6 million barrels in the week to Feb. 22 to 445.87 million barrels.

“Crude oil prices rose sharply after data showed OPEC’s production cut agreement is having a big impact on imports and inventories in the U.S.,” ANZ bank said on Thursday.

“Crude imports into the U.S. fell 1.6 million bpd last week, to a two-decade low,” it added.

The lower imports are in part because of supply cuts by the Organization of the Petroleum Exporting Countries (OPEC), which together with some non-affiliated producers like Russia, known as OPEC+, agreed late last year to cut output by 1.2 million barrels bpd to prop up prices.

But the falling U.S. import needs are also a result of surging American crude oil production, which has risen by more than 2 million bpd over the last year, to an unprecedented 12.1 million bpd.

GRAPHIC: U.S. oil production & storage levels – https://tmsnrt.rs/2Vanxza

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles