OPEC Countries focussed as Oil Prices Fall on U.S. Crude Stock Build

Published On:November 17, 2016, 2:59 pm

On Thursday, the crude oil futurities fell post the formal inventory reports suggested a larger-than-expected build in U.S. oil stocks.

Crude stocktakings in the United States went up by 5.3 million barrels in the week as compared to the anticipations for an increase of 1.5 million barrels.

The escalation in the inventories was a key result of greater imports that averaged out 910,000 barrels each day (bpd), as per the in-depth data issued by the U.S. Energy Information Administration on Wednesday.

U.S. benchmark WTI crude CLc1 was down 11 cents, or 0.24 percent, at $45.46 a barrel at 0040 GMT. European ICE Brent LCOc1 crude futures fell 16 cents, or 0.34 percent, to $46.47 per barrel.

Australian Bank ANZ stated that, "Crude oil struggled to keep its head above water after the weekly EIA showed another large rise in inventories ... Stocks of crude oil jumped 5.27 million barrels, much more than expected."

Credit Suisse said, all the five U.S. regional petroleum districts’ refining margins dropped down considerably. Jeffrey Halley a senior market analyst at OANDA said, "The U.S. EIA produced a higher than expected crude inventory figure, but this was subsumed into OPEC gossip," and “We are well into headline trading season as Nov. 30 approaches."

The Venezuelan President Nicolas Maduro stated that all the OPEC countries are ready to reach a “forceful” agreement on deducting oil output.

For which the Russian government has willingly approached to support an OPEC decision to arrest oil output, said Alexander Novak who is the Russian Energy Minister. He further added that he might have a meeting with Saudi Arabia’s Energy Minister Khalid al-Falih at a gas conference in Doha the following week.

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