Oil Rises, Paring Weekly Decline After Chinese Imports Increase

Futures climbed 1.4 percent in New York, paring this week’s loss to 1.5 percent. China’s crude oil imports rebounded from a one-year low to near a record amid signs the nation’s commercial stockpiles shrank by the most in almost eight years. U.S. crude output increased to a record last week, while motor fuel inventories rose more than double analysts’ forecasts, government data showed Wednesday.

Oil has averaged about $54 a barrel this quarter, the highest in more than two years as the Organization of Petroleum Exporting Countries and its allies agreed to extend output curbs until the end of 2018. Chevron Corp. will ramp up investment in the U.S. Permian Basin and other shale fields next year while reducing spending elsewhere, according to a statement Thursday.

“A recovery in Chinese imports is probably settling a few nerves,” said Ole Sloth Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen. Overall, “the focus is switching back from the OPEC-cut extension, to U.S. stocks, production and rig count.”

U.S. crude production expanded for a seventh week to 9.7 million barrels a day, the highest level in weekly data compiled by the Energy Information Administration since 1983. Gasoline inventories rose by 6.78 million barrels last week, the biggest gain since January.
more at:  https://www.bloomberg.com/news/articles/2017-12-07/oil-set-for-weekly-loss-as-focus-shifts-to-u-s-output-from-opec