Oil Trades Near $54 as U.S. Crude Stockpiles Resume Decline

Futures were little changed in New York after falling 0.2 percent Wednesday. Crude inventories fell by 2.44 million barrels for a fifth decline in six weeks, according to the Energy Information Administration. U.S. oil production rose a second week. OPEC output slid in October as tensions between Iraq’s central government and the semi-autonomous Kurdistan region crimped supply.

Oil advanced for a second month in October on signs the Organization of Petroleum Exporting Countries will agree at its Nov. 30 meeting to prolong cuts by its members and allied nations. The United Arab Emirates backs extending the supply agreement, Energy Minister Suhail Al Mazrouei said Wednesday, echoing earlier support by Saudi Arabia and Russia.

“OPEC may be trumpeting success as inventories close their gap to the most recent five-year average,” said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA. “It has progressed, but OPEC is not out of the woods. The stock-draws are not enough to reverse the large builds in oil inventories that we saw between 2014 and 2016.”

U.S. crude output rose by 46,000 barrels a day to 9.55 million a day, according to a report Wednesday by the EIA. That’s the highest level in a month. Gasoline stockpiles fell for a second week to 212.8 million barrels, the lowest level since August 2015.
more at:  https://www.bloomberg.com/news/articles/2017-11-02/oil-trades-near-54-as-u-s-crude-stockpiles-resume-decline

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Oil Falls by Most in Five Weeks Amid Fear of Chinese Demand Drop

Futures fell 2.5 percent in New York. China’s oil refining dropped the most in three years in July, while crude output retreated from the highest this year. Libya’s biggest oil field, Sharara, cut output by more than 30 percent because of security threats, a person familiar with the matter said. Meanwhile, the dollar strengthened, eroding the lure of commodities as a store of value. "We’re seeing some strength in the dollar, and the preponderance of news seems to be favoring the bears right now," Phil Flynn, senior market analyst at Price Futures Group Inc. in Chicago, said by telephone. "If you look at the China data this morning, when it came to the China refinery runs being down in July, that’s adding to the perception of slowing demand, and it’s offsetting the concerns about Libyan oil production." Click Read More below for additional detail.
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