Oil rises 1% to 3-year high, settling at $63.57, after US crude stockpiles fall

Crude oil prices rose but backed away from multi-year highs on Wednesday after U.S. government data showed an increase in fuel inventories and a falloff in refining activity.

A broad, global market rally, including stocks, has also been fueling investment into crude oil futures, but analysts warned of possible overheating.

U.S. crude inventories fell 4.9 million barrels last week, more than the 3.9-million decline forecast, but bigger-than-expected builds in gasoline and fuel stocks offset that drawdown, the Energy Information Administration reported.

The market was also bolstered modestly by data showing a sharp decline in U.S. production last week that analysts say could have been the result of extreme cold temperatures across the United States to start the year.

“The lower draw in crude oil stocks, combined with the strong builds in product stocks is bearish news for prices. But market participants could also use the sharp drop in production as an excuse to buy,” said Carsten Fritsch, oil analyst at Commerzbank AG in Frankfurt, Germany.
more at:  https://www.cnbc.com/2018/01/09/oil-prices-hit-highest-since-2014-but-analysts-warn-of-overheated-market.html

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Oil Rises Toward $63 as OPEC Cuts Weighed Against U.S. Supplies

Futures in New York rose as much as 1.2 percent after dropping on Monday. While U.S. inventories are forecast to have added 3.4 million barrels last week, that would mark slower growth than the prior week. OPEC and its partners, which are cutting output to ease the global glut, still expect markets to balance by about the third quarter, according to people familiar with the matter. U.S. crude inventories are at their highest since December and probably grew again last week, according to a Bloomberg survey before government data due Wednesday. While supplies are set for a fourth weekly advance, the expected increase is smaller than the 5 million-barrel gain a week earlier. Click Read More below for additional information.

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