On Thursday, crude oil futures decline after approved inventory reports signaled a larger than anticipated build in U.S. oil stocks.
Crude inventories in the United States increased by 5.3 million barrels during the week to Nov. 11, compared with expectations for an upsurge of 1.5 million barrels.
According to data released by the U.S. Energy Information Administration on Wednesday, the increase in inventories was mainly because of the higher imports that averaged 910,000 barrels per day (bpd),
U.S. benchmark WTI crude declined 11 cents, or 0.24%, at $45.46 a barrel at 0040 GMT. European ICE Brent crude futures decline 16 cents, or 0.34%, to $46.47 per barrel.
“Crude oil struggled to keep its head above water after the weekly EIA showed another large rise in inventories … Stocks of crude oil jumped 5.27 million barrels, much more than expected,” Australian bank ANZ said in a note.
Refining margins in all five U.S. regional petroleum districts decline in the week ended Nov. 11, Credit Suisse stated in a weekly report on Wednesday.
“The U.S. EIA produced a higher than expected crude inventory figure, but this was subsumed into OPEC gossip,” said OANDA senior market analyst Jeffrey Halley. “We are well into headline trading season as Nov. 30 approaches.”
Organization of Petroleum Exporting Countries (OPEC) countries are ready to reach a “forceful” deal on reducing oil production, Venezuelan President Nicolas Maduro said on Wednesday, after a meeting with OPEC Secretary-General Mohammed Barkindo in Caracas. Organization of Petroleum Exporting Countries (OPEC) members are due to meet on Nov. 30.
On Additioanal News
Delivery of crude oil for December on the NYMEX decline 0.26% to $45.45 a barrel. Delivery of Brent oil for January on the ICE Futures Exchange in London was last cited at $46.46 a barrel, up 0.22%.
On Wednesday, oil prices added to losses during North American hours, dropping to the lowest levels of the session after data presented that crude supplies increased the 3rd straight week.
The U.S. Energy Information Administration said in its weekly report that “crude oil inventories rose by 5.3 million barrels in the week ended November 11. Market analysts’ expected a crude-stock gain of 1.5 million barrels, while the American Petroleum Institute late Tuesday reported a supply increase of 3.7 million barrels.”
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, upsurge by 691,000 barrels the previous week, the Energy Information Administration stated. Total U.S crude oil inventories raised at 490.3 million barrels as of last week, which the EIA considered to be “historically high levels for this time of year”.
The report also presented that gasoline inventories, improved by 0.7 million barrels, compared to anticipation for a decline of 0.4 million barrels.
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