Oil Slips as US Gasoline Stockpiles Climb, Crude Supplies Drop

Oil fell to a two-week low on Wednesday, after a surprising build in US gasoline inventories and a rise in domestic crude output that is partially offsetting cutbacks by other countries trying to reduce a global glut. Crude inventories fell 1.03 million bbl to 532.3 million last week, the agency reported Wednesday. Crude production rose to the highest since August 2015. Price drops accelerated as the dollar strengthened against its peers, curbing the appeal of commodities.

OPEC and other producers such as Russian Federation agreed to cut output by almost 1.8 million barrels per day in the first half of 2017 to drain a supply overhang that has persisted for nearly three years. Total volume traded was about 30 percent above the 100-day average.

Brent for June settlement fell 45 cents to $54.44 a barrel on the London-based ICE Futures Europe exchange. It was the lowest close since March 31. Oil prices jumped by more than 10 per cent following the deal with global benchmark Brent crude now trading above $55 per barrel.

"There's been a lot of attention paid to OPEC production cuts, while nearly nobody has focused on the gains elsewhere", Stephen Schork, president of Schork Group Inc., a consulting company in Villanova, Pennsylvania, said by phone. The American Petroleum Institute, an industry group, reported a 840,000-barrel drop in inventories late Tuesday.

Big Boi Drops Hard-Hitting 'Kill Jill' With Killer Mike and Jeezy
And that's not all Big Boi is up to today - he'll soon be releasing "Kill Jill " with fellow ATL rap vets Killer Mike and Jeezy. He also posted a couple of movie poster parodies featuring himself and Adam Levine with the hastag #BigLevine.

Iran will probably be allowed to keep its oil production unchanged if OPEC decides to extend its six-month agreement on output cuts beyond June, Kuwaiti Oil Minister Issam Almarzooq said, adding that the Persian Gulf OPEC member has shown strong compliance with the OPEC supply cut deal. However, still-large inventories and higher output from some producers such as the United States - which is not participating in the supply accord - have limited the rally.

"We should see an accelerating level of crude draws, something we've been waiting for a while", Cavan Yie, senior equity analyst at Manulife Asset Management Ltd.in Toronto, said by telephone. Historically, periods of weak crude oil prices coincided with the contango structure.

The declines are welcome news after steady gains earlier this year that pushed petroleum inventories to record levels. Analysts and traders surveyed by The Wall Street Journal had predicted that gasoline supplies would drop by 2 million barrels.

Recommended News

  • Micro Machines is making a comeback this summer

    Micro Machines is making a comeback this summer

    Micro Machines is a great party title that if done right could flourish on the strength of its variety of online game modes. The trailer also reveals up to twelve players can compete in a race, plus the addition of new weapons and new game modes.
    Documentary delves into life of music pioneer Clive Davis

    Documentary delves into life of music pioneer Clive Davis

    Jennifer Hudson sang a tribute to Whitney Houston and at one point made her way into the audience to serenade Mr. He was the founder and president of Arista Records from 1975 through 2000 before heading RCA Music Group.
    Nicki Minaj causes a stir with new music video 'No Frauds'

    Nicki Minaj causes a stir with new music video 'No Frauds'

    Injured people are assisted after an attack on Westminster Bridge in London on March 22. . After the incident, it was thought that she would edit those scenes out of the video.
  • Brighton on brink of promotion after 2-1 win over Wigan

    Glenn Murray's strike before half-time put Brighton ahead before Solly March made it 2-0 in the 65th minute after some excellent work from Knockaert.
    Activist investor seeks ouster of Buffalo Wild Wings CEO

    Activist investor seeks ouster of Buffalo Wild Wings CEO

    Its down 0.63, from 1.63 in 2016Q3. 35 funds opened positions while 69 raised stakes. 138,828 are held by Geode Capital Ltd Llc. Wells Fargo & Mn holds 0% of its portfolio in Perma-Pipe International Holdings Inc (NASDAQ:MFRI) for 312,795 shares.
    British Parliament approves snap election

    British Parliament approves snap election

    Government spokeswoman Ulrike Demmer said Chancellor Angela Merkel spoke by phone Tuesday with British Prime Minister Theresa May. Montgomeryshire MP, Glyn Davies, said the Prime Minister had been left with "little choice" due to frustration over Brexit .
  • Uganda declares end to mission to pursue warlord Kony

    Uganda declares end to mission to pursue warlord Kony

    He said the responsibility of ensuring security in the areas UPDF is withdrawing from lies with the auto government in Bangui. Thomas Waldhauser declared the hunt for Kony largely over, calling the rebel leader "irrelevant" and in survival mode.
    Umbilical Cord Compound Boosts Brain Power in Mice

    Umbilical Cord Compound Boosts Brain Power in Mice

    It's not practical to do large-scale blood transfusions, even if they could be shown to help - which they haven't been. A specific protein called TIMP2 was found to mimic the same beneficial results as the umbilical cord blood.

    Analytical Guide for Hewlett Packard Enterprise Company (HPE), Visa Inc. (V) Stakeholders

    The company has a market capitalization of $30.05 billion, a price-to-earnings ratio of 9.83 and a beta of 3.05. The recommendation scale measures the value from 1 to 5, where 1 means "Strong Buy" and 5 stands for "Sell".
  • Analytical Guide for Newmont Mining Corporation (NEM), Fifth Third Bancorp (FITB) Stakeholders

    Clarivest Asset Management Ltd has invested 0.43% in Newmont Mining Corp (NYSE:NEM). 304,959 shares of the stock were exchanged. Newmont Mining Corporation is a mining company, which is focused on the production of and exploration for gold and copper.

    Indian ISIS miltants reportedly killed in US' MOAB attack in Afghanistan

    "An Afghan security source confirmed death of 13 Indians in MOAB attack in Achin", the news agency said in a tweet today. A security officer was quoted saying "13 Indian Daesh militants were also among those killed".

    North Korea's soldiers parade missiles and march as U.S. tensions rise

    In his annual New Year's address, Kim said that the country's preparations for an ICBM launch have "reached the final stage". Kim Il Sung died in 1994 at the age of 82, after leading his country from its establishment in 1948 until his death.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.