Oil Steady as U.S. Crude Stockpiles Drop While Output Rises

Futures slipped 0.6 percent after advancing for a second session on Wednesday. Crude stockpiles slid by 3.33 million barrels to the lowest level since January 2016, while gasoline supplies fell for the first time in three weeks, according to the Energy Information Administration. Oil production expanded further to the highest level since July 2015.

“The most recent EIA stock update gave something for both bulls and bears to cheer about,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London. “As has become the norm, the fly in the ointment for bulls is the march higher in U.S. crude production.”

West Texas Intermediate for October delivery was at $48.12 a barrel on the New York Mercantile Exchange, down 29 cents, at 11:54 a.m. in London. Total volume traded was about 25 percent below the 100-day average. Prices gained 58 cents, or 1.2 percent, to $48.41 on Wednesday.

Brent for October settlement fell 28 cents to $52.29 a barrel on the London-based ICE Futures Europe exchange. Prices climbed 70 cents, or 1.4 percent, to $52.57 on Wednesday. The global benchmark crude traded at a premium of $4.17 to WTI.

U.S. gasoline inventories dropped by 1.22 million barrels to 229.9 million last week, the EIA reported Wednesday. Crude output increased by 26,000 barrels a day to 9.53 million, expanding for a second week.
more detail at:  https://www.bloomberg.com/news/articles/2017-08-23/oil-holds-gains-above-48-after-u-s-stockpiles-extend-declines

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