Draw In Crude Inventories Lifts Oil Prices

Oil prices slightly pared losses on Thursday after official government data showed USA crude stocks fell, contradicting an earlier industry report that weighed on prices. The lowering of 2017 growth expectations should have been price-supportive, especially for WTI, but with this year nearing an end, attention will shift more to the output expectations for 2018, which at this point are bearish.

Yesterday the EIA said it expects US crude oil production in 2018 to rise by more than previously expected.

WTI light sweet crude oil fell 70 cents, or 1.4%, to settle at $50.60/bbl. Distillate stocks fell by 1.5 million barrels, short of expectations for a drop of 2.2 million barrels.

US crude oil prices trim earlier losses after USA government data showed domestic crude stockpiles falling for the third week in a row; WTI now -0.9% at $50.84/bbl.

Though the 2017 figure was lower than the forecast in EIA's September report, the 2018 growth projection was revised upward to 9.922 million b/d, or a year-on-year jump of 680,000 b/d, versus the 9.84 million b/d forecast a month ago.

Gasoline inventories, one of the products that crude is refined into, rose by roughly 2.5m barrels, confounding expectations of a draw of 480,000 barrels while distillate stockpiles fell by about 1.5m barrels, missing expectations of a decline of 2.2m barrels.

This supports what I have been saying all along that prices are likely to remain rangebound until OPEC and other major producers vote to extend the production cuts beyond the May 2018 deadline and also decide to deepen those production cuts.

US exports fell in the most recent week to 1.27 million bpd, but USA exports have still exceeded 1 million barrels a day for three straight weeks, the first time this has happened.

Many analysts expect Brent to stay between $50 and $60 a barrel as long as global markets stay balanced.

The U.S. bank said oil supply and demand fundamentals meant it expected Brent to average $58 a barrel in 2018.

Related News:

  • Texas Tech Tries To Maintain Momentum At West Virginia

    Texas Tech Tries To Maintain Momentum At West Virginia

    The Red Raiders will continue to rely on Shimonek and his wide receivers while mixing in a healthy dose of Nisby and Stockton. Offensively, Texas Tech football averages 46.8 points and 549.8 total yards (386.6 in passing and 163.2 in rushing) per game.

    Rediscovered Leonardo da Vinci painting expected to fetch $100M

    The painting was found in 2007 and was revealed to the public in 2011 after the restoration process was complete. A crystal orb is placed in his left hand, while his right hand is raised in benediction.

    Trader Alert: Unusual Volume Spotted in Flexion Therapeutics, Inc. (NASDAQ:FLXN)

    This is one of the most popular methods investors use to evaluate a company's financial performance. (NasdaqGM:FLXN) is -0.532154. Many analysts have provided their estimated foresights on Flexion Therapeutics, Inc . (NasdaqGM:FLXN)'s ROIC is -2.772065.
  • Launch of Russia's Progress resupply ship rescheduled for October 14

    But the countdown was halted before ignition of the Soyuz rocket's main engines, and the launch time came and went without liftoff.
    Indiana Pacers forward Glenn Robinson III to undergo left ankle surgery

    Indiana Pacers forward Glenn Robinson III to undergo left ankle surgery

    Glenn Robinson III will reportedly have surgery to fix his left ankle, with an expected return date in mid-December. Robinson sustained the injury while driving to the basket during a scrimmage in practice on September 29.
    Sasikala back to city prison

    Sasikala back to city prison

    Though Sasikala did not participate in any political activity, her visit to the city triggered reactions in political circles. Sasikala was granted emergency parole from October 7 to 11.
  • IndusInd Bank Q2 net up 25%

    Gross bad loans as a percentage of total loans stood at 1.08 percent in the September quarter, compared with 1.09 percent in the June quarter and 0.90 percent a year earlier.

    Major Analyst Actions Under Review: Altria Group, Inc. (MO), Banco Santander, SA

    The company reported $0.73 earnings per share (EPS) for the quarter, missing the Zacks' consensus estimate of $0.74 by $0.01. BidaskClub raised shares of Altria Group from a "buy" rating to a "strong-buy" rating in a report on Wednesday, June 21st.
    Financial Update of Johnson & Johnson (NYSE:JNJ)

    Financial Update of Johnson & Johnson (NYSE:JNJ)

    In other news, VP Paulus Stoffels sold 102,692 shares of the company's stock in a transaction that occurred on Monday, July 24th. It dropped, as 14 investors sold UHAL shares while 74 reduced holdings. 111 funds opened positions while 598 raised stakes.
  • Huawei Mate 10 Pro: foto in alta risoluzione e specifiche

    Huawei Mate 10 Pro: foto in alta risoluzione e specifiche

    Confermata anche una batteria generosa da 4.000mAh nonostante lo spessore limitato a 7,5mm. Doppia fotocamera e secondo indiscrezioni dovrebbe essere da 12 e 20 megapixel.
    Dallas Cowboys: Stephen Paea to retire, linebacker signed

    Dallas Cowboys: Stephen Paea to retire, linebacker signed

    The 30-year old corner played just two games in Dallas before being sidelined due to a concussion. The play of rookie defensive back Jourdan Lewis likely made Carroll expendable.

    EPS for Tupperware Brands Corporation (TUP) Expected At $0.94

    Tupperware Brands had a net margin of 10.10% and a return on equity of 117.25%. 4,955 were reported by Meyer Handelman Company. The insider Poucher Nicholas K . sold $96,950. 2,950 shares valued at $211,191 were sold by HAJEK JOSEF on Friday, June 9.


Most liked

Governor Signs Jackson Bill for Parental Leave
That builds on a 2015 law signed by Brown making it easier for women to push for equal pay. They are broad in scope, aimed at helping women in the workplace and at home.

Japan's Kobe Steel may find more data fabrication cases
Beyond automakers and trains, Kobe Steel has also been implicated in fabricating data for aerospace and defense-related products. They had fallen almost 40 percent in the previous two days, wiping about $1.6 billion off the company's market value.

Ryan aims to help Puerto Rico stand on its own
Residents struggle to find clean water, hospitals are running short on medicine and commerce is slow with many businesses closed. Acting Department of Homeland Security Elaine Duke will make her second trip to the island on Thursday.

Private health insurance set for shake-up
Mr Hunt believes the move will encourage young people to take up private health insurance while helping other policyholders. The Australian Prudential Regulation Authority will be tasked with ensuring every dollar offsets premium rises in 2018.

Raju Gari Gadhi 2 - Record Release In Overseas
Tollywood star Nagarjuna is back on the screens this week, with his own daughter-in-law for company in Raja Gari Gadhi 2. The movie has received a U/A certificate from the censor board and it has a runtime of two hours and five minutes.

BioDelivery Sciences International, Inc. (NASDAQ:BDSI) Files An 8-K Other Events
Grandeur Peak Global Advisors LLC lifted its stake in shares of BioDelivery Sciences International by 5.9% in the 1st quarter. Forest Hill Capital Llc increased First Horizon Natl Corp (FHN) stake by 17.51% reported in 2017Q2 SEC filing.

Healthcast : A Study on Omega-6 Fats & Type 2 Diabetes
The researchers combined data from 20 studies involving 39,740 adults from 10 countries. As a result, blood glucose levels become too high.

Another El Nino problem: More carbon dioxide in air
In South America, there was severe drought and hotter than normal temperatures because of the weather phenomenon. Then, as spring gets under way and summer approaches, plants begin to soak up more carbon again.

Institutional Investor Sentiment About Estee Lauder Companies Inc (NYSE:EL) Up
It is positive, as 48 investors sold EL shares while 192 reduced holdings. 83 funds opened positions while 207 raised stakes. Linscomb & Williams Inc reported 2,969 shares or 0.03% of all its holdings. 2,945 are held by Rampart Invest Management Ltd.

Study puts a count to suffering people in need of palliative care
Some 2.5 million children are among the annual count of almost 26 million who die without adequate relief, the team calculated. In Afghanistan, India and Nigeria, for example, less than 5 percent of pain management needs are met, according to the report.

MGIC Investment Corporation (NYSE:MTG) Closed Higher Than Its 50 Day Average
MGIC Investment Corporation (NYSE:MTG) last announced its earnings results on Thursday, July 20th. (NYSE:MTG) for 6.55M shares. Citigroup Incorporated invested in 0% or 82,719 shares. 67,746 were accumulated by Alliancebernstein Limited Partnership.

NAB references: Nawaz, Maryam, Safdar to be indicted today
He requested the court to suspend the accountability court's order which set the date for indicting him. Nisar said that the decision of the cases will be given by the courts and nowhere else.

Citizens Financial Group, Inc. (CFG) Stake Decreased by Renaissance Technologies LLC
It is negative, as 79 investors sold BAC shares while 543 reduced holdings. 65 funds opened positions while 170 raised stakes. On October 2 the company was set at "Underperform" according to a Bank of America report down from the previous "Buy" rating.

Kindergarten teacher missing after bailing out known felon
On Saturday, Tucson police contacted Malzahn when they received reports of credit card theft at the Tucson Mall. Investigators have questioned Malzahn who won't reveal information about the missing teacher's whereabouts.

Small quake registered in North Korea near nuclear test site
It has conducted several ballistic missile tests, as well as publicly stating it is working on a nuclear-capable ICBM. A small quake on September 23 was thought to be an aftershock of the nuclear test earlier in the month.