Published: Wed, December 06, 2017
Finance | By Loren Pratt

Oil Prices Slide On Major Gasoline Build

Oil Prices Slide On Major Gasoline Build

After last week's highly-anticipated meeting between Organization of the Petroleum Exporting Countries and its allies, Mr. Hewson said, crude prices are "probably going to drift a little bit lower" as the market refocuses on the "age-old debate about supply and demand".

The API report was also said to find that crude inventories slid by 5.48 million barrels last week and supplies at the key Cushing, Oklahoma, pipeline hub declined by 1.95 million barrels, the people said.

OPEC and 10 major producers outside the cartel, including Russian Federation, agreed Thursday to extend a deal to hold down crude output by almost 2% through the end of next year.

Gasoline stocks rose by 6.8 million barrels, compared with analysts' expectations in a Reuters poll for a 1.7 million-barrel gain. Unprecedented flooding from the Category 4 storm that slammed into the state's coast last week, sending gasoline prices surging as oil refineries shut, may also set a record for rainfall in the contiguous US, the weather service said Tuesday.

Before the EIA report, benchmark West Texas Intermediate (WTI) crude for January delivery traded down about 1.1% at around $56.83 a barrel, and it inched up to around $56.95 after the report's release but slipped to around $56.77 minutes later.

Recent spurt in oil prices is triggering a response from the suppliers.

USA crude imports fell last week by 73,000 barrels per day. Crude prices have risen more than 20% since September.

Week over week, US crude oil exports slipped by 54,000 barrels a day last week and USA production rose by 25,000 barrels a day. Over the past 12 months, Exxon stock has traded down about 5.1%.

The United States Oil ETF (NYSEARCA: USO) traded down about 1.5%, at $11.37 in a 52-week range of $8.65 to $12.00.

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