Crude oil prices faced the risk of going down again if necessary measures are not put in place. For the last two years, oil prices have been declining and we have seen the impact it had on the global economy. The nightmare was to be over as for the last one month, we have seen oil prices rebound. However, what we have seen this week reminds as that it is easier to go down than to climb higher. The decline in crude oil prices seen this week has been termed as the first weekly decline since mid-February. The decline has been associated with the rise of US crude stockpiles. We can hope that the meeting by oil producers in Qatar on April will achieve output cut.
Oil prices fell for a fourth session on Wednesday after the U.S. government reported an unexpected increase in crude and gasoline stockpiles, but an increase in refining runs and a drawdown in distillates helped prices bounce off session lows.
Prices also remained under pressure from this week’s International Energy Agency (IEA) outlook for slower growth in global crude demand.
While the crude build of 1.9 million barrels reported by the Energy Information Administration was more than forecast, it was not as big as the increase of 6.5 million barrels reported on Tuesday by industry group the American Petroleum Institute. The EIA data encouraged buying at session lows.
“Overall, the report is somewhat supportive because it was not as bearish as the previous API report last night that is why we are slowly digging our way out of the downside seen earlier this morning,” said Phil Flynn, senior energy analyst at Price Futures Group in Chicago.
The data also showed distillate stocks in the U.S. Gulf fell to a one-year low, while overall refining rates rose in the latest week, led by a jump in East Coast refining, which is operating at a record 99.8 percent of capacity. Increased refining rates could eventually reduce crude inventories.
more detail at: https://www.cnbc.com/2017/11/15/reuters-america-update-8-oil-prices-fall-for-fourth-day-after-u-s-crude-stocks-rise.html