Commodities – Crude Oil Combined Asia As Market Digests API Estimates
Crude oil prices were combined in Asia on Wednesday with investors mulling industry estimates on U.S. inventories of crude and refined products because they lose time waiting for official figures.
On the New York Mercantile Exchange crude futures for October delivery rose 0.08% to $48.27 a barrel, while you’re on London’s Intercontinental Exchange, Brent was last quoted down 0.28% to $54.12 a barrel.
U.S. oil stocks rose by 6.18 million barrels by the end of last week, the American Petroleum Institute said , in excess of each.5 million gain expected.
It was the next straight build after Hurricane Harvey shut production in some West coast of florida fields and refineries in Texas as some domestic producers also trimmed output to protect yourself from a better glut at storage. The oil storage hub at Cushing, Oklahoma, saw a build 1.32 million barrels.
However, gasoline supplies dropped 7.90 million barrels and distillates fell by 1.81 million barrels as key refineries in Houston and Corpus Christi were offline. The electricity Information Administration will release official data on Wednesday.
There is actually a wide divergence bwteeen the API and EIA figures.
Overnight, oil prices settled higher on Tuesday after the report showed Opec output fell in August but gains were capped as investors braced for U.S. crude inventory due data expected to show a large build in stockpiles.
In its monthly oil market report the Opec said production in August fell by 79,000 barrels per day (bpd) to 32.76 million as falling production from Venezuela, Iraq, the UAE and Saudi Arabia offset rising output from Nigeria.
Global oil demand growth is forecast to boost by 1.35m bpd to 98.12m bpd, representing an uptick of 70,000 bpd through the previous report.
Opec’s secretary-general Mohammad Barkindo said “It is actually clear the rebalancing process is under way,” and expressed optimism that growing demand in the second on the one half of year would continue to keep dent excess supplies.
The reported also highlighted a dip in non-Opec output, after several refineries along the Gulf Coast shut down as Hurricane Harvey tore through the U.S. oil heartland of Texas in August.