Oil Price Inches Up On Saudi Arabia Comment To Curb Exports

Javier Stokes
March 2, 2018

The American Petroleum Institute (API) reported Tuesday an increase in USA oil inventories by around 933,000 barrels for the week ending February 23.

Information released Wednesday by the Energy Information Administration U.S. commercial crude inventories rose by three million barrels in the week to February 23 to a total of 423.5 million barrels.

One key oil supply source is the USA; we see the production of oil ramping up very quickly.

While U.S. West Texas Intermediate crude oil in last April reduced 5 cents to $63.50 per barrel after elevating by 3 percent preceding week.

Based on an S&P Global Platts preview of the EIA oil stocks data, us oil stocks are expected to have risen by 2.7 million barrels last week.

Brent for April settlement, which expires today, declined 87 cents to end the session at US$66.63 on the London-based ICE Futures Europe exchange.

London Brent crude slipped 3 cents to $67.28 a barrel, after climbing nearly 4 percent last week.

Saudi Arabia is committed to meeting its production curb pledge and balancing exports, he said, adding that the nation, the world's biggest oil exporter, will keep overseas shipments in March below 7 million barrels a day.

Rain Thursday Afternoon; A Dry Weekend Ahead
Temperatures will also be very comfortable with lows down to the lower 50s! We dry out heading into the weekend. A wet and windy setup will carry us into our Thursday afternoon as a cold front approaches the area.

Gasoline stocks rose by 2.5 million barrels, compared with analysts' expectations for a 190,000-barrel drop.

The prices for oil grow at the expense of strict discipline Saudi Arabia, easing concerns about oversupply of oil in the United States and the disruption of supplies from Libya.

The entire energy complex was led lower by gasoline futures after a surprise build in US gasoline stocks, which rose by 2.5 million barrels, compared with expectations for a 190,000-barrel drawdown.

Oil fell more than 1 percent on Thursday, hitting two-week lows on pressure from a strong dollar and worries that surging US crude output might thwart OPEC's efforts to drain global supply.

Prices resumed their downward path after that report, in which the EIA also revised its November crude production figures upward to a record 10.057 million bpd.

It seems that only a stronger dollar, which could reduce demand and a surprise jump in USA production could derail the rally at this time, especially since recent data shows hedge funds returning to the long side of the market.

"The standoff "shale versus sheikh" continues to frame the oil market, with the former again gaining the upper hand", said Norbert Ruecker, head of macro and commodity research at Julius Baer. A stronger dollar makes oil more expensive for holders of other currencies.

Prices were pressured earlier after three of the world's top consumers of crude - China, India and Japan - reported a slowdown in monthly factory activity.

Other reports by

Discuss This Article