Published: Fri, October 13, 2017
Finance | By Loren Pratt

Crude Stockpiles Drop, Oil Prices Fall

Crude Stockpiles Drop, Oil Prices Fall

Overnight, crude oil prices settled lower on Thursday as a bearish outlook on global oil demand for 2018 offset data showing oil stockpiles fell for the third-straight week.

Crude inventories fell by 2.7 million barrels in the week to October 6, compared with analysts' expectations for a decrease of 2 million barrels. USA light crude was down 67 cents to $50.63 a barrel.

Brent crude futures, the worldwide benchmark for oil prices, were trading at $56.75 per barrel at 0649 GMT, up 14 cents, or 0.25 percent, from their last close.

The Organisation for Economic Co-operation and Development's (OECD) commercial stocks fell 14.2m barrels in August to just over 3bn barrels, leaving the surplus 170m barrels over the five-year average, down from 318m barrels at the end of January.

Meanwhile, traders also focused on oil inventory data.


Brent also rose 2 percent the previous day.

Though the 2017 figure was lower than the forecast in EIA's September report, the 2018 growth projection was revised upward to 9.922 million b/d, or a year-on-year jump of 680,000 b/d, versus the 9.84 million b/d forecast a month ago. S. inventories and a falloff in weekly production on Thursday.

US exports fell in the most recent week to 1.27 million bpd, but USA exports have still exceeded 1 million barrels a day for three straight weeks, the first time this has happened.

In May, Opec and non-Opec members agreed to extend production cuts of 1.8m barrels per day for a period of nine months until March 2018 but rising production from the U.S., Nigeria and Libya has undermined the oil cartel's efforts to curb excess supply.

The U.S. bank said oil supply and demand fundamentals meant it expected Brent to average $58 a barrel in 2018.

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