Oil Prices Rise On Huge Draw In Gasoline Stocks

US Hurricanes Affecting Oil Prices, Saudi Could Cut Output

US Hurricanes Affecting Oil Prices, Saudi Could Cut Output

Crude oil prices rose on Wednesday after the International Energy Agency (IEA) said a global surplus of crude was starting to shrink, even though USA data showed another big increase in inventories due to the ongoing effects of Hurricane Harvey.

The Saudi Arabian energy minister Khalid Al Falih agreed with his Venezuelan, Kazakh and UAE counterparts to keep all options open in their push to re-balance world oil markets, including the possible extension of output cuts beyond next March. Benchmark Brent crude rose 53 cents a barrel or almost 1 percent, to trade at $54.80.

This week, Saudi Arabia's discussions about lengthening the deal past March have supported oil prices. For the same period, analysts surveyed by The Wall Street Journal had consensus estimates for an increase of 3.7 million barrels in crude inventories, a decrease of 3 million barrels in gasoline inventories and a drop of 1.3 million barrels in distillate stockpiles. Total volume traded was about 13 percent above the 100-day average.

Refinery utilization rates fell by 2 percentage points to 77.7 percent, the lowest rate since 2008, as crude runs fell 394,000 bpd, EIA data showed.

USA crude futures CLc1 added to gains late in the session, boosted by expectations of a steady rebound in refining capacity.

OPEC's crude output fell in August for the first time in five months on renewed turmoil in Libya, with the cartel's production decreasing by 0.21 million bpd to 32.67 million bpd. The OPEC now sees demand growth of 1.4 mbpd this year while IEA sees growth at 1.5 mbpd.

Gasoline supplies had been crimped since late last week as several ports in Florida closed down operations fully or partially in preparation for Irma; now the flooding in different states is expected to curb demand for the transportation fuel too. 5. In July, OECD stocks declined by 19 million barrels to 3.02 billion barrels but stocks remain 219 million barrels above the 5-year average. Saudi Arabia has been curbing exports for the past few months to drain global and U.S. crude oil inventories to support crude oil (UWT) (DWT) prices. The exporters of the group have been looking to drive down global crude stockpiles and drain away oversupply from the market.

"With U.S. export volumes expected to increase, the strategic importance of the Gulf Coast will only grow".

Recommended News

  • Nadal has 2-set lead in US Open final

    Nadal has 2-set lead in US Open final

    At 3-all, 30-all, Anderson double-faulted to offer up Nadal's fifth break point of the match, then badly pushed a forehand wide. Carlos Moya is confident Rafael Nadal can continue to challenge for grand slams despite his advancing years.
    Kirk Cousins struggles in Washington's ugly loss to Eagles

    Kirk Cousins struggles in Washington's ugly loss to Eagles

    Cousins has passed for 1,579 yards, 12 touchdowns and three interceptions in five games against Philadelphia . Cousins completed only 2 of 8 passes and finished the quarter as the Redskins' leading rusher. with 10 yards.
    Another recently-released veteran signs with Green Bay

    Another recently-released veteran signs with Green Bay

    If Green Bay has an offensive question mark it is on the offensive line where the Packers left T.J. Green Bay will try to extend that win streak to eight games this Sunday against the Seahawks.
  • Sen. Kirsten Gillibrand joins chorus pushing 'Medicare for all'

    Sen. Kirsten Gillibrand joins chorus pushing 'Medicare for all'

    Senator Bernie Sanders is expected to introduce his Medicare for All bill this week, with a considerable number of co-sponsors. Pelosi says President Barack Obamas Affordable Care Act is actually more comprehensive than Medicare .
    Americans to face off in US Open semifinals, a first since 1981

    Americans to face off in US Open semifinals, a first since 1981

    Meanwhile Rafael Nadal has taken a two sets to love lead over young Russian Andrey Rublev in the men's quarter finals. All that's left is for her to go out and play the match of her life, like she's been doing pretty much all season.
    Venus becomes oldest US Open semi-finalist

    Venus becomes oldest US Open semi-finalist

    As of Monday, Venus Williams , 37, Sloane Stephens , 24, and Madison Keys , 22, are all vying for the Tiffany-engraved trophy. The latest U.S. players have looked to Venus, Serena, Lindsay Davenport and Jennifer Capriati as role models.
  • Adam Gotsis steps up in Denver Broncos' win

    Adam Gotsis steps up in Denver Broncos' win

    When Koo went to re-kick, the attempt was blocked and no good, sealing the thrilling win for the Broncos over a division rival. Siemian's first passing touchdown was on a free play after the Chargers jumped offsides, but that only makes me like it more .
    New York Jets at Buffalo Bills: Initial observations and thoughts

    New York Jets at Buffalo Bills: Initial observations and thoughts

    Well, we also saw early signs that Bowles is going to be just as puzzling to observe this year as he was last year. McCown, a 15-year veteran who is playing on his eighth N.F.L. team, is not the Jets' quarterback of the future.
    European Shares Seen Up As Investors Look To ECB

    European Shares Seen Up As Investors Look To ECB

    In China, the Shanghai Composite is down 0.2%, while the Hang Seng index in Hong Kong is also 0.2% lower. Tonight's meeting is scheduled for 9:45pm AEST, with a follow-up press conference at 10:30pm AEST.
  • American airlines cancels more than 2000 flights due to Hurricane Irma

    American airlines cancels more than 2000 flights due to Hurricane Irma

    The airway has waived baggage costs and in-flight pet fees for those traveling from places covered by an emergency weather waiver. However, some Floridians are complaining that certain airlines are trying to profit off a possibly life-threatening situation.
    Mane's controversial red card leaves Klopp fuming

    Mane's controversial red card leaves Klopp fuming

    Guardiola's side are back in action on Wednesday against Feyenoord and Chile global Claudio Bravo could deputise for Ederson . City were just, by far, the better team on the day and Liverpool will have to eat a big slice of humble pie.
    Emirates cancels Florida flights due to Hurricane Irma

    Emirates cancels Florida flights due to Hurricane Irma

    Flights at Key West's airport ended Thursday, a day later than the airport originally said. "I tried to rebook online", she said. For all those who can evacuate by road or air, many cannot because of physical or financial constraints.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.