Oil Falls as Shale Increases US Stockpiles

Upside Seen for Energy Stocks ETFs

Upside Seen for Energy Stocks ETFs

U.S. oil production is expected to surpass 11 million barrels per day in late 2018, a year earlier than projected last month, the U.S. Energy Information Administration said on Tuesday.

According to EIA data, U.S. crude inventories rose by 1.895 million barrels to 420.254 million barrels for the week ended February 2.

However, US West Texas Intermediate, WTI, crude was at $61.58 a barrel and was down 21 cents, or 0.3 percent, from their last settlement.

Daily trading volumes of U.S. oil futures contracts have more doubled in the past decade, averaging more than 1.2 billion barrels per day in 2017, according to exchange operator CME Group.

Total motor gasoline inventories increased by 3.4 million barrels last week, and are in the middle of the average range.

US West Texas Intermediate (WTI) crude was down 54 cents, or 0.9 per cent, at $60.61, having settled down 1 per cent in the previous session at its lowest close since January 2.

Singapore:Oil prices rose on Wednesday, lifted by a report that USA crude inventories fell last week, although analysts warned that soaring US output and a seasonal demand drop could soon weigh on crude.

Oil services company Baker Hughes said total US onshore rigs rose by 26 to 791, the highest since April 2015 and the biggest one-week rise in a year.

Despite recent forecasts that crude prices are headed for a significant correction because traders have oversold the commodity, at least one notable investor says it will continue to gain value.

A tanker carrying very light crude oil set sail from Houston to the Persian Gulf last month.

Also impacting crude oil rates is the impending refinery maintenance season in many markets, during which refineries temporarily suspended operations, depressing demand for crude oil.

Until the early 2000s the United States were oil starved, importing a peak of 12 million bpd.

United States producers are making new customers out of some of the world's biggest oil-importing nations in Asia and Europe, posing a serious competitive threat to the only other countries that produce as much crude: Saudi Arabia and Russian Federation.

Yet, in a trade that illustrates how the rise of the American shale industry is upending energy markets across the globe, the U.A.E. bought oil directly from the U.S.in December, according to data from the federal government.

Crude oil prices followed broader markets lower in the first few trading sessions of February, following a steady run in bullish territory for most of the previous month.

Chinese consumption of oil meanwhile is rising, as reflected by the surge to a record 9.57 million bpd in imports in January, according to official customs data.

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