Wednesday, 20 February, 2019

U.S. crude stocks drop, fuel inventories up

U.S. crude stocks drop, fuel inventories up U.S. crude stocks drop, fuel inventories up
Nellie Chapman | 10 January, 2018, 19:51

Export price index is expected to be 0.3 percent, down from 0.5 percent a month ago.

Surging shale production, which is being driven by a recent recovery in oil prices, will ensure that USA output continues to rise to over 11 million barrels a day by the end of 2019, it wrote in its regular... The 10 million-bpd milestone previously had not been expected to be reached until the fourth quarter. The decline in crude stocks fell short of industry group the American Petroleum Institute, which reported an 11 million-barrel crude draw on Tuesday evening.

Only Russia and Saudi Arabia have produced more crude, hitting peak output of over 11 million bpd and about 10.7 million bpd respectively in recent years. The average production in 2019 will rise 580,000 bpd to 10.85 million bpd, the agency said in its first outlook for next year.

John Conti, acting administrator for the EIA, said in a statement, "Led by US production, particularly in the Permian Basin, and new oil sands projects in Canada, non-OPEC production is forecast to continue growing through the end of 2019".

"There must be a special factor at play, perhaps the extreme winter weather in North Dakota, which hampered shale oil production in the Bakken", said Carsten Fritsch, oil analyst at Commerzbank AG in Frankfurt, Germany.

U.S. crude stocks drop, fuel inventories up

Much of the production growth will be concentrated in the Permian Basin, the largest USA oilfield stretching across Texas and New Mexico, said John Staub, the EIA director of the office of petroleum, natural gas and biofuels analysis.

Net U.S. crude imports rose last week by 152,000 barrels per day.

Experts expect that commercial oil reserves in the U.S.

The EIA also said that refineries processed 17.3 million barrels of crude daily in the week to January 5, producing 9.5 million barrels of gasoline, versus 9.7 million bpd in the last week of December 2017, which should explain the gasoline build.