What’s next? – OIL 07.12.17

Thu, Dec 7 2017, 09:49 GMT

by Fort Financial Services

Oil futures were mixed in early trading hours on Thursday, as market participants continued to digest inventory data from the United States, while looking ahead to the weekly oil rig count.

 

The US West Texas Intermediate crude contracts were down 0.09 percent to $55.91 per barrel as of 07:25 GMT. Meanwhile, Brent futures up 0.08 percent to $61.27 a barrel.

 

Benchmarks settled in red territory on Wednesday following a third-straight weekly decline in  crude stockpiles and a larger-than-expected increase in gasoline reserves.

 

The Energy Information Agency (EIA) said crude supplies dropped 5.6 million barrels for the week ended December 2, outperforming expectations of a 3.4 million-barrel drop.

 

The report also showed gasoline stocks growing 6.8 million barrels, above a forecasted 1.7 million barrels build. Distillate products rose 1.7 million barrels vs a 967,000-barrel draw seen.

 

Some analysts noted that it was not entirely uncommon to see gasoline stockpiles rising at this time of the year, but the build could be related to weak demand levels.

 

Previously, the American Petroleum Institute had said crude inventories fell by 5.481 million barrels last week.

 

Oilfield services provider Baker Hughes will release its weekly oil rig count on Friday. Last week, the firm reported a raise in the total oil rig count to 749 units, the highest level since September.

 

Earlier this week, benchmarks were supported by bullish sentiment related to the extension of the OPEC-led output cuts agreement for a nine-month period beyond March 2018.

Published on Thu, Dec 7 2017, 09:49 GMT

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