Reuters | Aug 02, 2018 00:34
* U.S. crude stocks rose 3.8 mln bbls last week -EIA
* U.S., China trade dispute weighs on oil prices
* Higher OPEC production weighs, Kuwait confirms output boost (Updates to market settle, adds commentary)
By Stephanie Kelly
NEW YORK, Aug 1 (Reuters) - Oil prices fell about 2 percent on Wednesday as a surprise increase in U.S. crude stockpiles fed concerns about global oversupply, while investors worried that trade tensions could hit energy demand.
Brent crude futures LCOc1 fell $1.82 to settle at $72.39 a barrel, a 2.5 percent loss.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.10 to settle at $67.66 a barrel, a 1.6 percent loss.
U.S. crude inventories USOILC=ECI rose 3.8 million barrels last week as imports jumped, the government's Energy Information Administration said. Analysts polled by Reuters had expected a decrease of 2.8 million barrels. oil futures pared losses briefly after the data, which also showed growing U.S. demand.
"It was surprising to see the build in crude, but it was a little bit offset by the bigger-than-expected draw in gasoline and the draw in Cushing," said Tariq Zahir, managing member at Tyche Capital Advisors.
Gasoline stocks USOILG=ECI declined 2.5 million barrels, while crude stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures USOICC=ECI fell by 1.3 million barrels, EIA data showed.
On Tuesday, the EIA reported that U.S. crude production fell 30,000 barrels per day to 10.44 million bpd in May. prices are also being pressured by concern that global trade tensions could crimp economic growth.
China said it would hit back if the United States takes further steps hindering trade, as the Trump administration considers slapping a 25 percent tariff on $200 billion worth of Chinese goods. month, Brent fell more than 6 percent and U.S. crude slumped about 7 percent, the biggest monthly declines for both benchmarks since July 2016. oil production last month was on average above the level Moscow promised following the Organization of the Petroleum Exporting Countries and non-OPEC meeting in June, energy minister Alexander Novak indicated on Wednesday. Novak said that higher production was due to the need to maintain the market's stability. comments indicate that Russia was producing above the level announced by Moscow after the OPEC+ meeting in June. Last month, Novak had said that Russia may surpass the 200,000 bpd level of increases if there is a need for it. Kuwaiti official said the country increased production in July by 100,000 bpd from June's average. Monday, a Reuters survey found that OPEC production reached a 2018 high in July. OPEC, plus Russia and other allies, decided in June to ease supply cuts in place since 2017.
"Brent futures continue to be pressured by last month's sharp upswing in Saudi and Russian crude exports that have forced a temporary supply glut that will require some slowing in output gains this month, especially from the Saudis," Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC: Harpex Container Index
https://reut.rs/2M7zrWB CHART: U.S. oil may drop to $67.28
https://tmsnrt.rs/2KfwykH CHART: Brent oil may fall more into $72.43-$73.20 range
Written By: Reuters
Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
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), Forex and cryptocurrencies 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 may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.