Stockpile Hike Leads to Plunging Oil Prices

Stockpile Hike Leads to Plunging Oil Prices

Stockpile Hike Leads to Plunging Oil Prices

Meanwhile, market analysts anticipated a 3.1M-barrel decline during the reported week.

The oil price has ignored rising geopolitical tensions in the Middle East, as a three-year old crude surplus has wiped out any real fear over supply, but one of the world's largest security consultants says there are red flags the market can not ignore.

Traders said an ongoing fuel glut was keeping prices under pressure despite a pledge by Organization of the Petroleum Exporting Countries (OPEC) and other producers to cut nearly 1.8 million barrels per day (bpd) of output. United States crude oil (UCO) (FXN) (SCO) prices fell in post-settlement trade on June 6, 2017, despite the fall in inventories. While U.S. oil imports from Saudi Arabia plunged 55 percent, shipments from Iraq surged to the highest since 2012.

Brent prospects have fallen more than 8 for each penny from their open on May 25, when OPEC picked to expand generation cuts into 2018. Stifel Financial analysts said Wednesday this information could bring about an amicable end to the issue if found to be true.

Since OPEC's December cuts, Texas has added 12,000 jobs in the oil and gas industry.

Throughout a almost three-year downturn, American oil companies have driven down the cost of advanced drilling methods, allowing them to pump profitably, even with U.S. West Texas Intermediate crude (New York Mercantile Exchange: @CL.1) trading between about $45 and $55 a barrel - roughly half of peak 2014 prices.

The U.S. Department of Energy noted that continuing production from non-OPEC countries will slow down the pace of global oil inventory reduction in 2017 and lead to a small inventory buildup in 2018.

USA stockpiles of crude oil and gasoline rose last week, reversing recent declines and weighing on oil prices.

Gasoline supplies jumped 4.1 million barrels, compared with a build of 667,000 barrels seen, and distillates gained 1.8 million barrels, compared with a build of 271,000 barrels expected.

Oil prices were subjected to heavy selling pressure after the EIA oil inventories data on Wednesday with WTI sliding rapidly to 4-week below the $46.00 p/b level.

Royal Dutch Shell (LSE: 0LN9.L - news) lifted force majeure on exports of Nigeria's Forcados crude oil, bringing all the country's oil exports fully online for the first time in 16 months.

The growing tension between Qatar and other OPEC members could undermine the OPEC deal. Some were already concerned about rising production from Libya and Nigeria, which are exempt from the agreement.

"Oil prices are likely to remain range bound with OPEC providing support for prices and U.S. production growth limiting potential price gains", said Rob Haworth, investment strategist at U.S. Bank Wealth Management.

Based Al Jazeera says it's under cyber attack
US shoots down pro-Syrian government drone firing on coalition forces: Spokesman