Oil Halts Slide Near $47 as U.S. Stockpiles Seen Extending Drop

Futures in New York were little changed after slumping 2.4 percent Monday. Inventories probably dropped by about 3.5 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report on Wednesday. Libya has stopped loadings from its biggest oil field, while Venezuela’s exports also declined in the first half of August.

“Right now, we are seeing a draw on the U.S. inventory stocks,” said Michael Poulsen, an analyst at Global Risk Management Ltd. As “the driving season is coming to an end, the question is if the latest draws in U.S. inventories will continue.”

West Texas Intermediate for September delivery, which expires Tuesday, rose 1 cent to $47.38 a barrel on the New York Mercantile Exchange. Total volume traded was about 9 percent below the 100-day average. The more-active October contract climbed 5 cents to $47.58 at 12:04 p.m. in London.

Brent for October settlement gained 3 cents to $51.69 a barrel on the London-based ICE Futures Europe exchange. Prices lost $1.06, or 2 percent, to $51.66 on Monday. The global benchmark crude traded at a premium of $4.17 to October WTI.

U.S. crude stockpiles have declined by almost 43 million barrels since the end of June, according to the Energy Information Administration. While inventories have eased, oil production has increased to the highest since July 2015. Output from major shale fields is also forecast to climb to a record next month.
more at:  https://www.bloomberg.com/news/articles/2017-08-21/oil-trades-near-47-as-u-s-crude-stockpiles-seen-extending-drop