OPEC oil production climbs as Saudi Arabia pumps moreNaija247news

  • OPEC oil production climbs as Saudi Arabia pumps moreNaija247news

OPEC oil production climbs as Saudi Arabia pumps moreNaija247news

Traders said prices rallied when industry information provider Genscape reported that crude inventories at Cushing, Oklahoma, delivery hub for USA crude, dropped 1.1 million barrels since Friday, July 27. USA crude CLc1 rose $1.30, or 1.9 percent, to $68.96 a barrel.

The price for Brent crude oil, the global benchmark for the price of oil, was down 1.75 per cent as of 9:20 a.m. EDT to $72.91 per barrel.

OIL traded near $68 a barrel after sliding for two consecutive sessions as rising United States inventories and higher output from the Organization of Petroleum Exporting Countries (Opec) and Russian Federation weighed on the market.

On Tuesday, data released by the American Petroleum Institute showed USA crude stockpiles to have risen by 5.59 million barrels in the week, compared to analyst expectations for a 2.8 million-barrel drawdown.

The figure for May, based on surveys of producers, is down by almost 300,000 bpd compared to the earlier EIA estimate for 10.749 million bpd oil production for May, with this estimate based on forecasts.

West Texas Intermediate crude for September delivery fell to as low as $66.92 per barrel and traded at $67.35 on the New York Mercantile Exchange at 8:57am local time.

"Oil is holding up reasonably well".

Crude oil futures remained relatively stable in European morning trading, following yesterday's rally of more than $1/b, as the market held up against short-term bearish factors that continue to weigh on sentiment.

The U.S. Energy Information Administration (EIA) on Wednesday reported a large build in crude oil inventories and a production decline in the week ending July 27.

Saudi Arabia's oil production grew by 230,000 barrels a day in July to 10.65 million barrels a day, just shy of an all-time peak reached in 2016, according to a Bloomberg survey of analysts, oil companies and ship-tracking data. "A lot of this is the risk premium priced in for Iran and when do we start seeing an impact on supply there", Patterson said. "We could even see light sweet Nigerian barrels being displaced from India, and heading to China instead", he added.

Despite the decline, China "continues to hold the mantle as the leading Asian destination for USA crude", said the firm's commodity research director, Matt Smith.

"There are a lot of escalation points that could occur very quickly and that worries me", Jonathan Barratt, chief investment officer at Ayers Alliance in Sydney, said.

American oil production in May actually inched down from April by 0.3 percent, according to EIA's Monthly Crude Oil and Natural Gas Production report.

U.S. President Donald Trump's decision to pull out of an global nuclear deal and reimpose sanctions on Iran has angered Tehran.

Elsewhere, oil prices may be moving on growing concerns about US-Chinese trade policies. "This could severely dent the competitiveness of U.S. oil and derivatives in the Chinese market", said Abhishek Kumar, senior energy analyst at Interfax Energy. Analysts polled by Reuters had expected a decline of 2.8 million barrels.