Monday, 10 December, 2018

Oil weighed by USA crude exports; lower crude stocks prevent bigger fall

Dr. Aliko Dangote President  CE Dangote Group Dr. Aliko Dangote President CE Dangote Group
Nellie Chapman | 23 February, 2018, 09:22

USA crude traded between $60.75 and $63.09, its highest since February 7. MCX Crude oil futures closed up with smashing gains of 2% to end at Rs 4080 per barrel after hitting highs above Rs 4100 levels.

Oil prices were up Friday morning in Asia, boosted by an unexpected decline in USA crude inventories. Economists surveys said stocks were expected to have risen by 1.3 million barrels. Weekly U.S. production fell by 1,000 barrels from a record high.

WTI Crude Oil (Light Sweet) price at NYMEХ Stock Exchange up by 2.88% to $62.81 per barrel.

"The reason that the inventories continue to drop at Cushing is because the market remains backwardated and therefore it's uneconomical to be storing crude", said Andrew Lipow, president of Lipow Oil Associates in Houston, Texas.

US crude exports jumped to just above 2 million barrels per day (bpd) last week, EIA data showed, close to a record high of 2.1 million hit in October.

Exports of US crude jumped to just above 2 million bpd, close to a record 2.1 million hit in October.

The drop at Cushing was because prompt crude prices were higher than forward prices, discouraging storage as it makes more sense to liquidate on-hand inventories. Inventories of the fuel rose by 300,000 barrels, versus a 3.6-million-barrel build a week earlier.

Mr. Lipow said strong economic growth has also helped boost oil consumption in the U.S.