USA crude oil stocks drop

Dr. Maan Fares cardiologist and vice department chair of Global Patient Services at Cleveland makes a point. — courtesy

Dr. Maan Fares cardiologist and vice department chair of Global Patient Services at Cleveland makes a point. — courtesy

"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.

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 oil closed down sharply by the end of the trading day Wednesday after investors mulled over the latest data set from the U.S. Energy Information Administration.

West Texas Intermediate for May delivery fell 25 cents to $52.40 a barrel at 9:16 a.m. on the New York Mercantile Exchange.

A preliminary Reuters poll showed analysts expected data to show United States crude oil stocks fell in the week to April 14, building on a surprise decline the previous week.

In London, June Brent crude LCOM7, -3.75% on the ICE exchange shed 16 cents, or 0.3%, at $54.73 a barrel.

TheNewsGuru.com reports that on December 10, 2016, OPEC won the backing of countries outside the oil cartel to join supply cuts for the first time since 2001, overcoming the final major obstacle for a global agreement to curb output.

US home sales shoot up to 10-year high
Twenty-three percent of existing-home sales in March were all-cash, compared to 15 percent by individual investors. The median existing-home price for all housing types in March was $236,400, up 6.8% from March 2016 ($221,400).

That could indicate fading strains from an oversupplied market, though US crude oil production continues its build beyond 9 million barrels per day, offsetting the decline in oil inventories to some extent.

The Organization of Petroleum Exporting Countries said in a report a day earlier that inventories shrank in developed nations during the first quarter, while forecasting that rivals in the United States shale industry will boost output.

World oil demand growth in 2016 was kept broadly unchanged at 1.38 million barrels per day (mb/d), averaging 95.05 mb/d.

Traders said that the rising U.S. crude production posed a concern that the oil supply overhang would continue, while the jump in gasoline stocks implied a stutter in demand.

Geopolitical concerns have also helped underpin oil.

Barkindo said the joint action has put OPEC and other producers in the "driving seat" to dictate events instead of "reacting to market developments".

The price of a barrel of Azeri Light crude oil decreased $0. Brent crude futures were at $53.43 per barrel at 0855 GMT, up 50 cents from their last close. This is part of the production cuts that the oil-producing kingdom had agreed to as a member of OPEC.

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