Published: Fri, December 08, 2017
Markets | By Rosalie Gross

Oil Prices Slide On Major Gasoline Build

Oil Prices Slide On Major Gasoline Build

The perception that the higher fuel stocks pointed to weak demand outweighed a drop in crude inventories by 5.5 million barrels to 451.8 million barrels, traders said.

United States crude oil imports averaged 7.2 million barrels per day last week-a decrease of 127,000 barrels per day from the previous week. That will be the biggest gain since January 2016 if replicated in government data due on Wednesday.

EIA data, once it's released, will help determine the direction for crude oil prices for the rest of the trading day and into Thursday morning.

Soaring U.S. output threatens to undermine efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russian Federation to bring production and demand into balance following years of oversupply. Libya will maintain its current production level until the end of next year to stay in line with OPEC's deal to trim global supplies, according to a person familiar with the matter.

Phil Flynn, a senior market analyst for the PRICE Futures Group in Chicago, said in a commentary emailed to UPI that other commodities like copper were on the decline because of a surge in supply, which by his read means China's economy may be slowing down.

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Oil prices increased by 18% since the beginning of September and can complete the climb for the second year in a row amid restrictions in OPEC production+. Total volume traded was about 42 percent below the 100-day average.

Brent for February settlement lost 16 cents to $62.70 a barrel on the London-based ICE Futures Europe exchange after adding 41 cents on Tuesday.

Crude oil inventories fell 5.6 million barrels in the December 1 week to 448.1 million, 7.8 percent below the level a year ago, the Energy Information Administration (EIA) said in its weekly report Wednesday.

USA crude on Wednesday slid almost 3 percent on Wednesday, its biggest daily decline in more than two months, after a sharp rise in US inventories of refined fuel suggested demand may be flagging, while US crude production hit another weekly record. It marks the lowest close for the benchmark since November 16 and the biggest one-day decline for WTI since October 6.

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